Tropicana Corporation has signed a sale and purchase agreement with IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Berhad for the sale of Courtyard by Marriott Penang (“Courtyard”) for a total cash consideration of RM165 million.
This will be a second property being disposed by the developer after it sold W Hotel to IOI for RM270 million back in December 2023. The Courtyard Penang sale will generate surplus cash of approximately RM80.8 million for the group which it said will be utilised to pare down its existing financing facilities.
The group said the disposal is aligned with its ongoing initiatives to monetise its landbanks and investment properties, reduce its net gearing and improve its financial position. Tropicana is set to continue to deliver sustainable earnings backed by RM2.3 billion unbilled sales, ongoing property sales campaigns as well as improved performance from the Group’s property sales netting RM1.4 billion in FY2023.
“Over the past few months, the Group reported a string of positive news, from its successful sukuk redemption, higher revenue jump to multiple award triumphs. We are confident that the Group will continue to strengthen its market presence and contribute to its future earnings supported by high unbilled sales of RM2.3 billion and strong take-up for ongoing projects.” the management emphasised.
Opened its doors in 2020, Courtyard is the first in Malaysia, offering 199 hotel rooms and suites together with hotel facilities. Located at the heart of Georgetown Penang, this modern hotel enjoys commanding views and high occupancy rates throughout the year.
