Property Hunter Magazine Issue 64 2015 | Seite 104
WEST MALAYSIA PROPERTY NEWS
Analysts Say More
To Be Done To
Bring Tropicana’s
Debt Down
Capitamalls To Buy Tropicana City Mall For
Rm565 Million After A Call Off In 2013
D
espite of the successful
sales of its two significant
assets, Tropicana Corp Bhd’s
gearing is said to remain
high and there are more to be done to
reduce its piling debts according to a
property analyst.
It is reported that 460 million from the
Ringgit Malaysia 565million deal with
Capitamalls Malaysia Trust recently is
used in Tropicana debts’ repayment
which reduced the group’s borrowing
from 2.4 billion to 1.95 billion ringgit.
I
Tropicana City Mall
n October of 2013, CapitaMalls
Malaysia Trust (CMMT) had
decided not to pursue further
with the acquisition as “both
parties are unable to mutually
agree on the terms of the sale and
purchase agreement”.
CapitaMalls Malaysia REIT
Management Sdn Bhd, the
manager of CapitaMalls, said it
intended to fund the acquisition
through debt and/or equity fund
raising in a combination to be
determined later.
CapitaMalls Malaysia REIT
Management announced on
Aug 23, 2013 it had received a
letter of intent from Tropicana
Corp to explore the opportunity
to explore the purchase of the
four-storey shopping mall and
12-storey office tower.
“Upon completion of the
acquisition, CapitaMalls’ property
asset value will increase by
approximately 16.7 per cent to
approximately RM 3.8 billion from
RM3.2 billion.
Whilst for 2015, CapitaMalls
Malaysia Trust is acquiring the
Tropicana City Mall and Tropicana
City Office Tower from Tropicana
City Sdn Bhd for RM540 million.
In a filing to Bursa Malaysia,
CapitaMalls said the costs,
including the acquisition fee,
would be RM565 million.
The acquisition will be subject to
the satisfactory completion of due
diligence, which includes a building
audit and valuation exercise.
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“The proposed acquisition
is expected to be
completed by the third
quarter of 2015,” it said.
Tropicana City X[ H