The Address Sept-Oct 2013

Plans for a Prosperous Future
GOING FORWARD: THE POWER OF BELIEF
TROPICANA CORPORATION’ S IMMEDIATE VISION AND
MISSION – Tropicana Corporation Berhad’s current goal is
to solidify the Group’s positioning as a leading property developer
in Malaysia. In order to do so, it requires a solid platform
to sustain a strong growth in sales – this is achieved
with the presence of a strong pipeline of future projects,
strategically gleaned from more than 2,000 acres of prime development
landbank with a potential future GDV of RM70
billion. Having spread its wings to Greater KL, Iskandar Malaysia
and Penang, the Group possesses a strong presence in
these growth regions. “This future GDV of RM70 billion is
spread out across these three regions with Greater KL accounting
for 49% of future GDV, Iskandar Malaysia 36% and
the remainder up north on Penang Island,” says Dato’ Yau
Kok Seng, Group Chief Executive Officer of Tropicana. He
further added, “Based on our current plans, we are focusing
equally on commercial and residential properties.”
In the Group’s Fiscal Year 2013 (FY13), Tropicana Corporation
plans to target new sales of RM2.0 billion, and to anticipate
new property launches worth RM3.0 billion. Sales of
ongoing as well as completed inventories worth RM800 million
are expected to accelerate in this period. Steady contribution
from property investments and enhanced earnings with
land trading activities will put the Group in a stronger and
more secure position. At present, the Group has chalked up
1Q FY13 new sales of RM254 million, with new sales to-date
having risen to RM420 million. With sustainable earnings
growth prospects which consist of unbilled sales of around
RM1.1 billion as at March 2013, Tropicana Corporation
plans to further strengthen its balance sheet via asset monetisation
and a pro-active degearing exercise which is expected
to achieve a net gearing of 0.65x by end FY13 and 0.5x by end
Fiscal Year 2014 (FY14).
Corporation Berhad can only go forward and more confident
in its vision and mission to become one of Malaysia’s leading
property players. Tropicana Corporation’s development
plan for this year and the near future is to have a sustainable
market driven approach, where their development plans are
concerned, with a target to achieve about 20% to 25% compound
annual growth rate (CAGR) in launches over the next
three to five years. Planned launches for the current year are
estimated at RM3.0 billion.
ANOTHER WIN FOR TROPICANA – Adding another feather
to its cap, Tropicana Corporation Berhad took home the BCI
Asia Top 10 Developers Award 2013 for its role as a key industry
player in the property industry and its numerous social
and environmental contributions.
The BCI Asia Awards is a regional event attended by the industry’s
top architects and building professionals in Hong
Kong SAR, Indonesia, Malaysia, the Philippines, Singapore,
Thailand and Vietnam. This event provides an overview of
the regional building and construction industry by recognising
the top architectural firms and developers that had the
greatest impact on the built environment in Southeast Asia. ➢
Tropicana’s success is mostly due to its dynamic and experienced
management team that is able to deliver growth strategies
and capital management initiatives. Despite the changes
at the top management level, Dato’ Yau Kok Seng said,
“Firstly, I must acknowledge that I am very fortunate to have
inherited a very good team. What I needed was to further
strengthen the team in order for us to execute the corporate
strategy that we have now formulated. I have reviewed the
organisation chart, identified the competency gaps and all the
key positions have substantially been filled. Proper succession
is also in place, and the Group will continue to focus on the
importance in maintaining our talent pool through talent
management and embarking on learning and development
programme.”
Coupled with its strongest asset and a signature of the Group
– the Tropicana brand name – which has long been recognised
for quality, innovation and visionary outlook, Tropicana
Presenting the award — From left: Dr Matthias Krups, Chairman and CEO of BCI
Media Group presenting the award to Edmund Kong, Deputy Group Managing
Director of Tropicana Corporation Berhad
SEPT/OCT 2013 | TA 53