Tropicana redeems RM100m sukuk, continues debt-cutting drive

• “The redemption of sukuk reflects Tropicana Corp's prudent financial management and commitment to fulfilling its obligations to investors. Tropicana will continue its growth trajectory with ongoing initiatives to enhance sales, monetise its landbank and investment properties, as well as optimise financial management.”

KUALA LUMPUR (Sept 3): Tropicana Corp Bhd (KL:TROP) has redeemed another tranche of its sukuk wakalah programme worth RM100 million that matured on Wednesday. 

In a statement by the property developer, it added that it had also redeemed RM123.5 million of sukuk on June 30, 2025. Both redemptions form part of the group’s RM1.5 billion senior Islamic medium-term notes programme, issued in 2020 to fund its development plans.

Earlier redemptions included RM465.5 million on June 30, 2023, RM179 million on Oct 6, 2023, and RM110 million on June 7, 2024.

“The redemption of sukuk reflects Tropicana Corp's prudent financial management and commitment to fulfilling its obligations to investors. Tropicana will continue its growth trajectory with ongoing initiatives to enhance sales, monetise its landbank and investment properties, as well as optimise financial management,” its statement read.

Over the past two years, Tropicana Corp has accelerated efforts to pare down borrowings and reduce gearing, mainly through asset divestments. These include selling its Tropicana Gardens Mall (TGM) to IOI Properties Group Bhd (KL:IOIPG) for RM680 million in cash in July 2024.

Prior to that, Tropicana Corp sold its W Kuala Lumpur hotel and Courtyard by Marriott Penang in late 2023 and early 2024 for a combined RM435 million. Collectively, the three sales generated just over RM1.1 billion.

As at June 30, 2025, Tropicana Corp's total borrowings stood at RM2.26 billion, slightly lower than RM2.31 billion a year earlier, while its gross gearing ratio eased to 0.42 times from 0.43 times at end-2024.

Tropicana Corp previously told The Edge in an interview in July 2024 that it aims to reduce borrowings to RM1.2 billion by end-2025, down from elevated levels recorded between 2017 and 2021.

The property developer currently has RM2.1 billion in unbilled sales and a development pipeline with an estimated gross development value (GDV) of RM6.5 billion, spanning projects in Johor, the Klang Valley, Genting Highlands and Langkawi. Its total landbank stands at 1,336.1 acres, with potential GDV of RM168.4 billion.

For the first half of FY2025, Tropicana Corp saw its net profit plunge 92.6% year-on-year to RM2.56 million from RM34.49 million previously, on the back of a 12.6% decline in revenue to RM590.54 million, due to lower recurring income following asset disposals.

Shares in Tropicana Corp closed one sen or 0.88% lower at RM1.13 on Wednesday, valuing the developer at RM2.84 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.