Tropicana to divest RM2b worth of assets over 2 years

PETALING JAYA: Tropicana Corp Bhd, which is focusing on divestment of assets, has identified assets worth in excess of RM2 billion for divestment over the next two years, said its group CEO Datuk Yau Kok Seng (pix).
"We've identified non-core and investment property assets and some of the raw land bank and these assets amount to in excess of RM2 billion.
"At the moment our key focus is to de-gear and strengthen our balance sheet. Our key focus will be divestment of those assets identified," he told reporters after its AGM yesterday.
Yau said it aims to lower its current gearing of 0.6 times to 0.3 times by 2016.
He said it has already divested RM1 billion worth of assets prior to the RM2 billion identified.
On whether it will still sell Tropicana City Mall and the office tower following the failed negotiations with Capita malls last year, he said it will consider proposals if the pricing is right.
"On W Hotel, development is ongoing, we have completed the construction of the foundation and superstructure started in early May. Of course at the right pricing, if someone offer to buy the residence on en bloc basis and the hotel as well, we'll definitely consider it," he added.
Yau said it will unlock value of its assets via property development sales and sale of raw land. Majority of its raw land for sale are located in the Klang Valley.
"We have close to 2,000 acres (landbank) with potential gross development value of RM70 billion," he said.
Yau said it is on track to achieve its target sales of above RM2 billion this year with RM1.3 billion worth of sales already in hand.