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Wednesday, 1 March 2017

(The Star) Tropicana Q4 revenue up 50%

PETALING JAYA: Property developer Tropicana Corp Bhd posted 50% higher revenue of RM457.3mil compared with the corresponding period last year, and a net profit of RM29.26mil for the fourth quarter ended Dec 31, 2016.

The group attributed its surge in revenue to a land sale of RM33.4mil and higher sales take-up rate, driven by projects with higher work-in-progress.

For the year in review, Tropicana reported a commendable revenue of RM1.46bil, an increase of 16.5% compared to RM1.25bil recorded last year due to higher work in progress from the group’s on-going developments in Klang Valley and the northern region.

In a press release yesterday, Tropicana said that a one-off gain on disposals of properties and a subsidiary of RM163mil reported in the preceding year caused the group to record lower net profit of RM115mil in 2016.

While prospects for the property sector remains challenging in the short term, the group believes that there will still be demand for properties in prime locations that have accessibility to superb amenities and competitive pricing.

“With an unbilled sales of RM2.54bil and strategic approaches to unlock the value of 1,283 acres of prime land with potential gross development value in excess of RM50bil, the group is expected to be on track to register positive earnings in FY17.

“In FY17, Tropicana’s strategy will remain to be market driven and adapted to market demand while focusing on unlocking value of its sizeable land bank in strategic locations in Klang Valley, Northern and Southern Regions.

“Coupled with the group relentless efforts in delivering exceptional values to its customers and convincing track record, Tropicana remains well positioned on delivering sustainable growth,” it said.

In FY2016, Tropicana’s developments in the Central region continue to draw healthy interest. New launches such as Cheria Residences, the third phase of the residential precinct at the 863-acre Tropicana Aman, Kota Kemuning and Ridgefield Residences, the third residential phase at Tropicana Heights, Kajang, both attracted good take up rates of 54% and 43% respectively from buyers. Meanwhile, the 55 floors of The Residences located in the heart of Kuala Lumpur’s city centre recorded an impressive take-up rate of 80%.