Tropicana Corp acquires 50.1% stake in Peluang Duta, to develop township

PETALING JAYA: Tropicana Corp Bhd is acquiring 50.1% stake in Peluang Duta Sdn Bhd(PDSB) for RM49.05million from four individuals, to develop a township on a leasehold land owned by PDSB’s unit.
Tropicana’s board of directors told the stock exchange that the acquisition will be funded by internally generated funds.
PDSB’s 70% owned subsidiary T Sanctuary Development Sdn Bhd owns 329.1 acres of leasehold land, which is strategically located in Johor and close to Singapore and other matured township developments.
The land has been earmarked for a mixed development with a potential net gross development value (GDV) of RM4.3 billion—for which PDSB had obtained planning permission to carry out the proposed development on April 14 and May 11, 2015.
The overall proposed development component comprises 70% residential and 30% commercial, which includes terrace houses, shop offices, urban affordable homes, serviced apartments as well as an international school.
“The proposed acquisition is consistent with our strategic intent to expand our existing landbank and sustaining its property development income. The successful completion of the proposed acquisition will increase our landbank in the strategic southern region,” the board of directors said.
The board is optimistic of the prospects of PDSB as the future development of this landbank is expected to be earning accretive to the group,” it added.
Tropicana's shares gained 0.58% to close at 86sen with 157,600 shares done.