KUALA LUMPUR (February 11): Tropicana Corp Bhd announced on Friday February 11 that it has reached an agreement with PowerChina International Group Ltd to develop a 308-acre integrated entertainment center dubbed Tropicana Paradise in Genting Highlands.
According to the group’s announcement in Bursa Malaysia, the project is part of the planned 596-acre mega development in Genting Highlands called Tropicana WindCity.
The development will include, among other things, a total of 1.5 million square feet of retail space, serviced apartments, branded residences, as well as 4 and 5 star international branded hotels.
“Above all, I would like to express my sincere gratitude to PowerChina for their trust, confidence and support to Tropicana. Our Tropicana team has worked for months to align this agreement and this collaboration signifies our united commitment to building a sustainable township,” Tropicana CEO Lee Han Ming said in a statement on the strategic partnership.
“PowerChina is a global powerhouse and a Fortune 500 company with a strong presence in the construction and engineering industry. With their expertise and construction financing, we are confident that PowerChina will take Tropicana Paradise to the next level,” he said.
The project will include sustainable transport and infrastructure such as a comprehensive cable car system, an electric tram system and elevated pedestrian walkways suitable for the disabled, as well as cycle paths and wheels.
As it will be developed in Genting Highlands, a place sensitive to nature, Tropicana and PowerChina will strive to preserve the natural landscape of the area, the group said. The focus will be on sustainable energy such as solar power, the statement added.
The property developer said the agreement was signed between its wholly owned subsidiaries, Tropicana Inspirasi Indah Sdn Bhd and Tropicana Inspirasi Impian Sdn Bhd, and PowerChina’s wholly owned subsidiary, Sinohydro Corp (M) Sdn Bhd.
PowerChina is a global electrical construction company founded in 2011 and has been involved in more than US$100 billion in construction projects worldwide, while ranking 107th on the Fortune 500 list of companies in 2021.
Separately in an award filing, Tropicana said the deal will award the construction project based on the most competitive terms acceptable to Tropicana.
In the event that PowerChina is awarded the construction works for the entertainment center and three blocks of serviced apartments, PowerChina will make every effort to provide the maximum possible financing margin for the construction costs of the project, and will obtain the Consent and final approval from competent/applicable authorities. government authorities and financial institutions in China, the filing adds.
The property developer also said it will provide a money-back guarantee if it accepts PowerChina’s financing offer.
PowerChina Executive Vice President Zhou Jiayi said the company is proud to partner with Tropicana and believes Tropicana’s WindCity lead development will attract a lot of positive interest from local and overseas investors.
“We are thrilled to be part of this healthy and exciting development in the highlands with a cool climate. We are confident in our engineering and construction expertise (and) with the Tropicana Master Plan, we will definitely build an entertainment and leisure center of tomorrow at Tropicana Paradise,” Zhou said.
As of Friday’s market close, Tropicana shares were unchanged at RM1.04, giving the property developer a market capitalization of RM1.58 billion, based on 1.51 billion shares outstanding.
Based on Bloomberg data, Tropicana is trading at 0.32 times its price to book value with a net tangible asset value of RM3.21 per share.