Tropicana Residences has signed a sale and purchase agreement with IOI PFCC Hotel and Flora Development to sell the W Kuala Lumpur hotel in Malaysia and its assets for RM270m ($25.67m).
Tropicana Residences is a wholly owned subsidiary of Tropicana Corporation.
In its stock exchange filing, Tropicana said: “The disposal consideration was arrived at on a ‘willing buyer-willing seller’ basis after taking into consideration, the expected net proforma gain arising from the proposed disposal of approximately RM7.41m.”
It added that: “The proposed disposal will give rise to approximately RM270m in proceeds, and with such proceeds, after deducting incidental expenses related to the proposed disposal, to be utilised by Tropicana to amongst others, fully repay W KL’s existing bank borrowings and hence, improving Tropicana Group’s gearing level.”
The proposed disposal is anticipated to not have an immediate effect on the company’s net assets and debt levels for the current financial year ending 31 December 2023.
The sale is expected to be finalised in the first quarter of 2024.
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Additionally, the company plans to use the proceeds to partially repay the existing bank borrowings of Tropicana Group, enhancing the overall gearing of the company.
W Kuala Lumpur is a five-star hotel situated in the Golden Triangle, Kuala Lumpur, Malaysia.
The 25-storey property has 150 rooms and suites, along with 346 car park bays.
It offers various dining options and 1,476m² of event space, comprising six event venues and four breakout rooms.
Other amenities at the hotel include a fitness centre, spa, and outdoor pool.
The hotel is situated adjacent to the junction of Jalan P Ramlee and Jalan Ampang, near Petronas Twin Towers and Suria KLCC.