KUALA LUMPUR – Previously known as Dijaya Plaza Sdn Bhd, Tropicana Plaza Sdn Bhd, a wholly-owned subsidiary of Tropicana Corporation Bhd, has entered an agreement with Kenanga Investment Bank Bhd (KIBB) to sell its Dijaya Plaza Tower in Kuala Lumpur for a cash consideration of RM140 million.
The asset involved consists of a piece of freehold land measuring approximately 0.9 acre together with an en-bloc 19-storey office tower known as Dijaya Plaza with two levels of basement car park containing 322 parking bays located at 237, Jalan Tun Razak, Kuala Lumpur. The four-years-old building is a landmark in the neighbourhood.
According to Tropicana, the cash flow is expected to improve its financial situation by freeing up nett proceeds of approximately RM51.6 million. The building with a total net lettable area of 156,488sq ft is currently 70 per cent leased out.
Based on the group’s unaudited results as at Sep 30, 2015, the group’s total borrowings will reduce from RM1,746.7 million to RM1,660 million resulting in further improvements in the nett gearing position of Tropicana Group.
The disposal is expected to be completed in the second quarter of 2016 and has no significant effects on earnings per share and nett assets per share of Tropicana for the financial year ending Dec 31, 2016.
Established for more than 40 years, KIBB is a financial group in Malaysia with extensive experience in equity broking, investment banking, futures broking, treasury, corporate advisory, Islamic banking, wealth management and investment management. It is the largest independent investment bank by equity trading volume and value, as well as one of the top three brokerage houses with the largest network of remisiers in the country.