KUALA LUMPUR (March 13): Tropicana Corp Bhd and Pantai Kok Resort Development Bhd have mutually agreed to terminate a 44.61-acre land development at Padang Mat Sirat, Langkawi.

Tropicana was the developer to undertake the joint development agreement (JDA) on the Pantai Kok land, according to its filing to Bursa Malaysia on Wednesday.

“In consideration of the current market conditions and given the development on the Pantai Kok land has yet to commence, the parties have mutually agreed to terminate the Pantai Kok JDA,” it said.

Tropicana said the termination enables the group to save on such development costs associated with the Pantai Kok land, which will allow the group to allocate financial resources more efficiently towards the other existing businesses.

It noted that the termination is not expected to have any material impact on the group’s earnings for FY2024.

To recap, Tropicana inked the JDA with Pantai Kok Resort in April 2019 to develop 44.61 acres of land at Padang Mat Sirat, Langkawi across 15 years, with an estimated gross development value (GDV) of RM3.02 billion.

Shares in Tropicana closed at RM1.26 on Tuesday, valuing the group at RM2.9 billion.