MCT buys Tropicana land to build RM265m luxury condominium

KUALA LUMPUR (Aug 22): MCT Bhd is acquiring a 7,143 sq m piece of leasehold land within Tropicana Golf & Country Resort in Bandar Damansara, Selangor from Tropicana Corp Bhd, controlled by tycoon Tan Sri Danny Tan Chee Sing, for RM42.3 million cash.

MCT said it plans to develop a RM265 million luxury condominium in two separate phases on the land, which has a direct frontage onto Persiaran Tropicana and bordered by the Tropicana Grande luxury high-rise condominium.

To feature 226 units, MCT is expected to generate a gross profit of RM146 million from the proposed condominium project that is slated for commencement next year and to be completed in 2023.

"The proposed acquisition is in line with the group’s strategy to acquire more landbank for potential development in strategic locations with high development value, which will provide the
opportunity to expand and strengthen the group’s existing business of property development of residential and commercial properties," MCT said in a filing with Bursa Malaysia yesterday.

"It is also in line with the group’s efforts to build its brand as a quality property developer who is able to meet the needs of different social and economic classes by developing a diverse mix of products ranging from affordable homes to luxury properties in exclusive neighbourhoods," it added.

MCT said its indirect wholly-owned unit One Residence Sdn Bhd has yesterday entered into a sale and purchase agreement (SPA) with Tropicana's wholly-owned subsidiary Tropicana Golf & Country Resort Bhd to acquire the land, which expires on April 4, 2109.

MCT intends to fund the proposed acquisition and the eventual development cost of the land via a combination of internal funds and/or bank borrowings

Barring unforeseen circumstances, the proposed acquisition is expected to be completed by the first quarter of 2019.

MCT shares were untraded yesterday. The stock closed at 77.5 sen yesterday, bringing a market capitalisation of RM1.13 billion. Tropicana shares closed unchanged at 87 sen today, valuing it at RM1.27 billion. — theedgemarkets.com

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