Any available small units (unfurnished) for sale? Preferably high floor and not graveyard view?

PM sent

KUALA LUMPUR: Tropicana Corporation Bhd is offering for sale its Tropicana City Mall and office tower in Petaling Jaya to CapitaMalls Malaysia REIT Management Sdn Bhd.

CapitaMalls Malaysia REIT Management said on Friday it had received a letter of intent from Tropicana City’s unit Tropicana City Sdn Bhd to look into purchasing the properties.

Tropicana City Mall is a four-storey mall with basements which can accommodate 1,759 cars while Tropicana City office tower is a 12-storey building.

“With the signing of the letter of intent, an exclusive period for the due diligence will be granted to CMMT and upon being satisfied with the results, CMMT shall proceed to enter into negotiations on the terms for the proposed acquisition,” it said.

CapitaMalls Malaysia REIT Management is the manager of CapitaMalls Malaysia Trust.

Tropicana deems mall as its non core assets...looks like not many big developers want to venture into malls

What is the current transacted price?

KUALA LUMPUR: CapitaMalls Malaysia Trust (CMMT) is buying the Tropicana City Mall with its office tower for a purchase consideration of RM540mil.

The trustee, AmTrustee Bhd, had on behalf of CMMT, signed a conditional sale and purchase agreement with Tropicana City Sdn Bhd to buy the property.

The property comprises of a four-storey shopping mall known as Tropicana City Mall and the four levels of car park comprising of 1,759 car park bays and a 12-storey office building known as Tropicana City office tower.

The retail mall has a net lettable area (NLA) of 448,248 sq ft. It started operations in December 2008 and the approximate age of the property is six years. The committed occupancy rate was 89.2% as at Jan 15, 2015.

The office tower has a NLA of 101,246 sq ft. It started operations in November 2009 and the age of the property is five years. The office tower is 100.0% occupied.

"The proposed acquisition will further strengthen CMMT's position as a sizeable, well geographically diversified shopping mall real estate investment trust in Malaysia.

"Following the completion of the proposed acquisition, CMMT's property asset value will increase by 16.7% from RM3.2bil to about RM3.8bil. This is expected to increase CMMT's visibility among Malaysian and international investors to support its future growth," it said.

CMMT intends to fund the proposed purchase through debt and/or equity fund raising, involving issuance of new units.

The risk factors from the acquisition were increased competition from other retail properties or between retailers and other office properties could have an adverse effect on CMMT‟s financial condition and results of operations.

It also said a decrease in the gross rental income, occupancy rate and the value of the property would have an adverse effect on CMMT‟s financial condition and results of operations;

It added CMMT will depend on external financing to finance the proposed acquisition and its ability to pay distributions may be adversely affected by this new loan agreement combined with CMMT's current financing arrangements and/or future loan agreements or any interest rates fluctuation;

CMMT said its current gearing, based on the latest audited financial statements as at Dec 31, 2013 was 28.8% and it would increase to 39.5% if the proposed acquisition was entirely funded via debt.

“Such gearing level may hamper CMMT’s ability to incur further borrowings and cause CMMT to become more vulnerable to interest rate increases,” it said.

Tags: Corporate News, Property, Tropicana City Mall

Source: http://www.thestar.com.my/Business/Busines...540m/?style=biz

Any updates on the transacted prices? I feel like the prices are capped at 1.1kpsf.. Some correction likely in Tropics? IMHO, facilities n facade not attractive for a 1100psf condo.

How's the mall performing? Few more malls coming up nearby like Atria, GLO, Starling.

so...does it mean the tropicana city mall will change name?

the mines shopping mall also took over by capital mall..and renam it as the mines capital mall...they are doing good on the mines shopping mall...still able to attract a lot of crowds during weekend...

i thought this tropicana city mall is a landmark project by tropicana...looks like they are going to built other commercial as their landmark project...guess it's the one at kota damansara...

RETAIL of 448,248sf @ RM1,000.00psf = RM448,248,000.00
OFFICE of 101,246sf @ RM650.00psf = RM65,809,900.00
CP of 1,759 nos @ RM15,000.00/bay = RM26,385,000.00
Total = RM540,442,900.00 ???

Dijaya or renamed tropicana corp was operating opposite at wisma dijaya previously.
then shift to this tcm office tower.
now sold pulak.
being quite a prominent developer, one would have thought they have a strong foothold of their own.
so now ended up renting an office tower from a competitor?

never really did like tcm. very bare and nothing much to offer.
only like to go there for gsc since easier to procure tickets.

but i think capital would be able to improve yields and bring more values.

i wonder whether this sale include the land next to it. rumoured to be casa damansara series?

But i think they are not doing well with Sungei wang plaza but for other reasons la. Tropicana Gardens with 4 condo tower n 1 million sqft mall will be their new landmark project. Still don't feel its right to sell off this mall n their corporate HQ (100% fully tenanted).

This post has been edited by Babizz: Jan 27 2015, 02:58 PM

please read carefully.
the property comprises the office tower as well as the mall and the carpark.
the serviced apartment is not included.

kochin,

Do u know whats the average rental here like? As mentioned, many people go here only bcos it's easy to buy tix from the cinema.

Yea said it's not right to sell it all off as the office tower (part of the deal) houses their hq.

ya..i like to watch movie at TMC...when the GSC newly open, i am watching transformer 2 at there...lol...

it's quite funny to sell their HQ ..such a reputable developer....

But I wonder how good this mall is actually doing recently. Just back from there and a lot of shops have closed since last time, most notable Best Denki no longer there. Seems to me that only a few of the restaurants there can survive and have good business (a lot of the restaurants also closed down already as well).

Right now there are so many "Something exciting opening here soon" there, makes me wonder if this mall is actually doing well now...

The curve also the same lah. Some people are just not good at mall design and management.

Yeah, i wonder what CMMT saw in them. My only point is TCMs growth will be stagnant or slow down with all the new malls coming up nearby+GST kicking in. Most retail companies i know are cutting down on expenses n im expecting a slowdown of the economy for q2 2014. I think not many exciting things are happening there U know which restaurants can survive ah?

Hope CMMT has better plans than tropicana.

Wired,

Curve's business not good ah? what about IPC n E@curve? New ikea in Cheras (MUCH bigger) will take away the spillover crowd from the ikea here.

No I feel that The Curve has much more crowd now compared to 4-5 years ago. 5 years ago e-curve for example is empty, but now has OK business there and "old" Curve has a huge crowd (always difficult to find parking there for example, but tropicana always can find).

But I will still go to TCM because of a few things: GSC, Aeon big + some of the restaurant (that have good business always) like for example Sushi Tei, Pasta Zanmai. But i get the feeling that many of the other shops there are struggling.