KUALA LUMPUR (Aug 26): Tropicana Corp Bhd (KL:TROP) said on Monday it has inked a sale and purchase agreement (SPA) with NTT Global Data Centers Holding Asia Pte Ltd to dispose of a parcel of land in Gelang Patah, Johor — measuring 68.457 acres — for RM383.13 million.

According to a bourse filing, the SPA was entered between Tropicana Corp’s wholly-owned subsidiary Tropicana Firstwide Sdn Bhd (TFSB) and seven indirect subsidiaries of NTT Data Group, a Japanese multinational information technology service and consulting company.

In a filing statement, Tropicana said the original cost of investment in the land stood at approximately RM143.19 million.

This is the fourth major disposal by Tropicana in the past nine months. The property group had separately disposed of three assets to IOI Properties Group Bhd over the period totalling RM1.115 billion. They include Tropicana's 70%-owned Tropicana Gardens Mall in Petaling Jaya (RM680 million), W Kuala Lumpur Hotel (RM270 million) and Courtyard by Marriott Penang (RM165 million).

In a separate statement, Tropicana said it has "over 728 acres of premium landbank in Johor" and will continue to build sustainable townships as well as look for strategic partners to jointly develop the land.

"We are confident that we will continue to strengthen our market presence and contribute to our future earnings supported by our high unbilled sales of RM2.3 billion and strong take-up for ongoing projects.” Tropicana added.

The SPA is conditional upon the conditions precedent and terms stipulated being fulfilled, including to obtain Majlis Bandaraya Iskandar Puteri’s approval and endorsement of the amended master plan.

In addition, before May 31, 2025, TFSB will need to complete the platform ready earthworks and adjoining land’s earthworks. The proposed disposal is expected to be completed in the first quarter of 2026.

The company said part of the proceeds, amounting to RM80.93 million, will be used to repay existing borrowings on the lands, with much of the balance to fund its working capital and other property development projects.

At Monday’s closing, shares in Tropicana Corporation closed up one sen or 0.7% to RM1.50, giving it a market value of RM3.45 billion. Year to date, the stock is up 15.4%.