Tropicana Corp Raises RM300 Million via Sukuk Wakalah to Strengthen Financial Position and Support Expansion

PETALING JAYA (Nov 14): Tropicana Corporation Bhd has successfully completed the issuance of a RM300 million Sukuk Wakalah under its Islamic Medium-Term Notes (IMTN) programme, reinforcing its capital structure as the group accelerates growth across its nationwide developments.

The latest tranche—issued under Tropicana’s 2024 IMTN programme—was initially planned at RM200 million but was upsized to RM300 million following strong investor demand. A large portion of the sukuk was taken up by government-linked institutional investors, demonstrating continued confidence in Tropicana’s credit strength and project pipeline.

Proceeds to Fund Key Township and Mixed-Use Developments

Tropicana said the funds raised will be used to advance several ongoing and upcoming projects across its signature master-planned townships in Malaysia. The capital injection forms part of the group’s broader effort to enhance financial efficiency, accelerate project timelines, and support sustainable earnings growth.

The developer continues to maintain a positive momentum backed by RM2.1 billion in unbilled sales and a portfolio of developments valued at an estimated gross development value (GDV) of RM6.5 billion. These include notable projects such as:

• Premium Green Terraces @ Tropicana Alam, Puncak Alam

• Bungalow Lots @ Tropicana Paradise, Genting Highlands

• Clarissa Serviced Suites & Beachwalk Shoppes, Tropicana Cenang, Langkawi

• Skypark Kepler Branded Residences, Lido Waterfront Boulevard, Johor

• Fraser Heights Terrace Homes, Tropicana Uplands, Johor

The issuance is also relevant to broader market activity involving industrial land in Selangor, commercial property in KL, and transit-linked hubs such as office space in Bukit Jalil, where developers continue to leverage structured financing to support expansion. Similar financing avenues are also being utilised in logistics-driven markets surrounding factory real estate in Puchong and industrial property in the Subang area.

Lower Gearing, Improved Outlook and Stronger Balance Sheet

Tropicana highlighted that its balance sheet continues to strengthen, with gross gearing reduced from 0.43 times (Dec 31, 2024) to 0.42 times (June 30, 2025). Earlier in October, the group also completed a RM139 million sukuk repayment—bringing total cumulative payments under its 2020 IMTN programme to RM1.12 billion.

In a separate development, MARC Ratings upgraded the outlook on Tropicana to positive, while maintaining its A rating, citing improved gearing and healthy project fundamentals.

Long-Term Growth Anchored by Landbank and ESG Commitments

Tropicana’s management reiterated that the group remains committed to financial optimisation, enhanced sales performance, and strategic monetisation of landbank and investment assets. The developer currently holds 1,336.1 acres of land with a future GDV of RM168.4 billion, providing substantial long-term development runway.

The company also highlighted its ongoing initiatives to reinforce its ESG commitments, which continue to guide its planning, township design, and value creation strategies.