PETALING JAYA: Tropicana Macalister Avenue (Penang) Sdn Bhd, a wholly owned subsidiary of Tropicana Corporation Bhd, has signed an agreement with IOI PFCC Hotel Sdn Bhd, an indirect subsidiary of IOI Properties Group Bhd (IOIPG), on Friday for the sale of Courtyard by Marriott Penang for a total cash consideration of RM165 million.

The disposal was arrived at a willing buyer-willing seller basis and will generate surplus cash of about RM80.8 million for the group which will be utilised to pare down its existing financing facilities. The disposal is aligned with the group’s ongoing initiatives to monetise its landbanks and investment properties, reduce its net gearing and improve its financial position.

Tropicana said in a statement it will 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 financial year 2023.

“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.

“Our mission is to transform Tropicana into a future-ready property group with a strong purpose of sustainable growth, centred around our development DNAs and ESG commitments. We have strategic divestment plans that we are confident of achieving and will continue to roll out effective sales campaigns to drive growth, especially emphasising our digital and online initiatives and customer-centric engagements,” the company said.