Azmin to sell land to Tropicana to fund PKR's election warchest
13:02 Feb 02, 2018  |  By
Azmin to sell land to Tropicana to fund PKR's election warchest

It is a possible repeat of the Canal City land sales to Tropicana Corporation Berhad before the 13th General election.  

Tropicana reported a 50% annual quarter to quarter increase in revenue in for the 4th quarter in March 2017. The Star reported: 


In FY2016, Tropicana’s developments in the Central region continue to draw healthy interest. New launches such as Cheria Residences, the third phase of the residential precinct at the 863-acre Tropicana Aman, Kota Kemuning and Ridgefield Residences, the third residential phase at Tropicana Heights, Kajang, both attracted good take up rates of 54% and 43% respectively from buyers. Meanwhile, the 55 floors of The Residences located in the heart of Kuala Lumpur’s city centre recorded an impressive take-up rate of 80%.  


The positive news need to be sustained. In May 2017, Tropicana gave a statement that they are targeting sales of RM1.2 billion for financial year 2017:  


He added that over the next two years, Tropicana aimed to build 3,000 homes priced below RM500,000 at its existing townships, Tropicana Aman in Kota Kemuning and Tropicana Heights in Kajang.


The affordable home segment, dubbed as “urban affordable homes”, would consist of strata-title apartment units with sizes ranging from 650 to 1,000 sq ft.


Yau pointed out that Tropicana is also looking to expand its recurring income by focusing on international schools.


Currently, the group’s property investment portfolio includes St Joseph’s Institution International School Malaysia, GEMS International School, Tenby International School, as well as the introduction of a new mall and offices at Tropicana Gardens.


Tropicana Aman project is on the Canal City land that drew a controversy and former Menteri Besar Selangor, Tan Sri Khalid Ibrahim tried to renegotiate the deal:


Under the transaction, Tropicana acquired 1,172 acres from the state for RM1.3bil to be paid over 20 years as the land is being developed.


Under the terms of payment, Tropicana had to fork out RM50mil as deposit and make two advance payments over a period of six months. The remaining is to be paid with interest over various schedules stretching over 18 years.


However, what Tropicana has done is carve out a portion of the land to Eco World Development Group Bhd for a cash payment of RM470.57mil.


This has got the state all riled up because Tropicana has been able to monetise the deal faster that it had envisaged. Now Khalid is seeking an accelerated payment schedule for the land. 


Khalid failed to do so. Tan Sri Dato Danny Tan and Tropicana is believed to have cut a deal with Dato Seri Anwar Ibrahim and Teresa Kok to sell the land (believed to be below market price) and approved the conversion to finance PKR and Selangor Pakatan Rakyat for the 13h General Election. He may have had no choice but to approve. The attempt to renegotiate could be a token resistance.


It could likely be one of the issue that led to his dismissal via the Kajang Move concocted by Rafizi Ramli and the theory by Chegu Bard, it was made so by Azmin Ali, as it ended up with Azmin assuming the Menteri Besar position.   


At the same time, Danny Tan was cutting deal in Penang to contribute to DAP’s 13th general election war chest:


Finally, it is odd to note that Ivory, the successful bidder, is now left being a minority shareholder in TISB. TISB is a joint-venture company in which Dijaya Corporation Bhd holds a 55% stake, while Ivory Properties Group Bhd the remaining 45%. In the agreement with Dijaya Corporation Bhd, Ivory is the turnkey builder for PWC and will thus be entitled to 48% of the project’s gross revenue with the amount due to the company estimated at RM5billion.


The deal is getting more complicated by the day. From a successful bid and a 70% stake in the joint venture, Ivory is now a minority shareholder of a SPV and a turn key contractor for a backdoor controlling shareholder of PWC which will be built on Bayan Mutiara prime land. Did the state government see this coming or it is a willing player all along?


Danny Tan plays both side of the political divide and more ....


It is an open secret in Penang that Ivory Properties is a DAP proxy company as revealed by DAP dissident Mohamed Razali Abdul Rahman. The deal with Tropicana is obviously to help cash out. For picking up the baby from DAP, Tropicana was given a RM10 billion project in 2011:


The sought after property in Selangor now is Kuala Selangor. Already, Eco World, LBS Bina and Mah Sing is doing townships development in Ijok.


Another area that has seen new development activity is Puncak Alam, which is located north of the Klang Valley, about 50km from Kuala Lumpur city centre. Properties there comprise mainly medium to low-cost housing property. However, this is changing.


“Puncak Alam is being transformed from an agriculture-based town to a more urban one as developers there are improving the access roads, infrastructure and amenities in the area,” says Wong.


Will Danny Tan and Tropicana not use the positioning of their International schools in Kuala Selangor to make more in-roads into the area or focus on the land owned by Top Gloves?


Danny and brother Tan Sri Vincent Tan plays in both sides of the political divide and also royalty as they are partners with the Sultan of Johor.


They could cut the same type of deal as Canal City for a large piece of land in Kuala Selangor and join the Ijok land rush from Dato Seri Azmin Ali and the Selangor government. Since the renegotiation of SPLASH sales is at a stalemate and Eco World land deal is under scrutiny, its not a bad idea for Azmin or Tun Daim Zainuddin behind scene lending ahand to look towards Danny Tan to help raise their election money.