IOI Properties acquires Tropicana Gardens Mall for RM680m

IOI Properties Group Bhd is acquiring Tropicana Gardens Mall in Petaling Jaya from Tropicana Corp Bhd for RM680 million in cash.

The sale, involving Tropicana’s 70%-owned subsidiary Tropicana Indah Sdn Bhd, is part of Tropicana’s strategy to monetise its investment properties and reduce debt.

This move is expected to reduce Tropicana’s gearing ratio from 0.54 times to 0.39 times, enhancing its financial position and preparing the company for future growth.

Tropicana Gardens Mall, opened in 2020, is a green-certified, 7-storey mall with 1.05 million sq ft of floor space and MRT connectivity.

Alongside the sale of Tropicana Gardens Mall, Tropicana has also sold two other investment assets—W KL Hotel and Courtyard by Marriott Penang—to IOI Properties for a combined total of RM435 million.

The aggregate transaction value with IOI Properties exceeds RM1.1 billion.

The proceeds will enhance Tropicana’s financial stability and enable future growth.

Tropicana plans further developments with an estimated gross development value (GDV) of RM4 billion and will focus on strengthening its market presence through strategic sales and digital initiatives.

These upcoming projects include residential and commercial developments across Malaysia, such as Varia Shop Offices in Kota Kemuning and Avisa Terrace Homes in Puncak Alam.

In addition to its strategic sales, Tropicana is set to deliver six new developments in the current fiscal year, further solidifying its position in the market.

The projects include SouthPlace Residences in Subang Jaya and Gemala Residences in Kota Kemuning.

Tropicana’s management said that the sale of Tropicana Gardens Mall is part of a larger strategic plan to reposition its asset and debt portfolios effectively.

With a substantial landbank of 1,842 acres and a GDV of RM120 billion, Tropicana said it is well-positioned for sustainable performance and continued growth in the coming years.