Monday, 1 July 2013

Tropicana Corp is looking to sell some development land and low yielding assets

Tropicana Corp Bhd is looking to sell some development land and low yielding assets as the group seek to strengthen its balance sheet and cut down its debt-to-equity ratio. The property developer is also stepping up its sales drive, targeting new sales of RM2bn in 2013 as it launches over RM3bn worth of properties. So far this year, Tropicana has launched projects with total gross development value (GDV) of RM1.3bn.

Tropicana CEO Datuk Yau Kok Seng said the disposal of non-core assets, coupled with an accelerated sales drive and strong operating cash flows, will strengthen the group's gearing level closer to the industry's average. "We are targeting to reduce our current net gearing of 0.75 times to about 50% over the next 12 months. We have put plans in place and have identified non-core assets and low yield assets (to dispose)," he said. (sun)

Source: CIMB Daybreak - 01 July 2013

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