Share
PETALING JAYA (April 29): Tropicana Corp Bhd is deepening its bet on Langkawi's tourism-driven property market, with its wholly-owned subsidiary Tropicana Scenic Development Sdn Bhd (TSDSB) acquiring two separate parcels of land on the island for a combined consideration of RM195.88 million, according to the company's announcements on Bursa Malaysia.
Both Sale and Purchase Agreements (SPAs) were executed on Dec 29, 2025, with the formal announcements filed on April 28, this year.
Completion of both acquisitions is targeted for the fourth quarter of 2026.
Deal 1: Bandar Padang Lalang — 21.03 acres for RM151.06 million
The larger of the two deals sees TSDSB acquiring 14 parcels of freehold and leasehold land measuring approximately 21.03 acres (85,091 sq m) in Bandar Padang Lalang, Daerah Langkawi, Kedah, from Maya Elemen Sdn Bhd (MESB) for RM151,060,000.
The purchase consideration was arrived at on a willing-buyer willing-seller basis, at a discount to the land's market value as appraised by Jones Lang Wootton using the comparison approach.
Payment is structured in three tranches: 20% was paid prior to SPA execution, 30% upon execution (RM30,212,000), and the remaining 57% — amounting to RM86,104,200 — is payable within 14 days from the unconditional date.
Five of the 14 parcels carry Malay reserved land restrictions, requiring written approval from the State Executive Council before any transfer or change of shareholding to non-Malay parties.
The land is currently zoned for agriculture and building use, and is strategically located within Bandar Padang Lalang — identified by the Langkawi Development Authority (LADA) as a key zone for agro-tourism and commercial development.
The area sits in close proximity to Tanjung Rhu Beach, the Kilim Geoforest Park (a UNESCO Global Geopark) and the Black Sand Beach, and is expected to benefit from ongoing government-led developments including Ministry of Health quarters currently under construction in Kampung Padang Lalang.
Tropicana said the land is well-positioned for potential sustainable residential and agro-tourism related developments, aligned with Langkawi's ongoing transformation under the Langkawi District Local Plan 2030.
Deal 2: Padang Mat Sirat — 3.12 acres for RM44.82 million
The second acquisition involves a single parcel of leasehold land measuring approximately 3.12 acres (12,622 sq m) in Bandar Padang Mat Sirat, Daerah Langkawi, acquired from Tanjung Mali Resort Development Sdn Bhd (TMRDSB) for RM44,820,000.
The land carries a 99-year leasehold tenure expiring Nov 7, 2116, giving it an unexpired term of approximately 91 years.
Its express condition restricts use to hotel, serviced apartment and commercial purposes only — directly signalling the intended development direction.
The purchase consideration was arrived at at a discount to the land's independently appraised market value of RM54,000,000, as assessed by Firdaus & Associates Property Professionals Sdn Bhd.
Payment is structured as 20% prior to SPA execution, 60% upon execution (RM26,892,000), and the remaining 20% (RM8,964,000) within 14 days from the unconditional date.
The land is located in Padang Matsirat on Langkawi's western coast, in close proximity to the Langkawi International Airport, and is near tourist attractions including Mahsuri's Tomb and Atma Alam Batik Village, with Pantai Cenang and Pantai Tengah approximately 15 to 20 minutes away.
Tropicana said the location's strong accessibility and proximity to key tourist destinations makes it suitable for potential commercial or mixed-use development.
Related party angle
Both transactions are classified as related party transactions under Chapter 10 of Bursa Malaysia's Main Market Listing Requirements.
The interested parties across both deals are the same: major shareholder of Tropicana group executive vice chairman Tan Sri (Danny) Tan Chee Sing, and four of his family members — sons Din Tan Yong Chia (Deputy group CEO and director of TSDSB), Dillon Tan Yong Chin (Director of TSDSB) and Dion Tan Yong Chien (Group non-independent non-executive director), as well as son-in-law Jared Ang Tzer Shen (Group non-independent non-executive director).
Neither acquisition requires shareholder or regulatory approval.
The highest applicable percentage ratio for the larger deal is 3.67%, while aggregated with the earlier Tanjung Mali transaction over the preceding 12 months, the combined ratio stands at 4.76%.
The smaller deal carries a percentage ratio of 1.09%.
Both acquisitions will be funded through a combination of bank borrowings and internally generated funds.
On a proforma basis assuming 70% bank financing at 6% per annum, the combined deals would lift Tropicana's gearing from 0.43 times to approximately 0.45 times, based on audited financials as at Dec 31, 2024.
..........
EdgeProp's monthly print edition is out! Free delivery is available for selected regions. Subscribe now.
