TAN Sri Danny Tan Chee Sing, who in the past had injected over RM11billion of his private properties into Tropicana Corp Bhd, may likely sell more assets to the property group.
Tan, the younger brother of Berjaya Group's Tan Sri Vincent Tan, has a wide spectrum of businesses like property development, property investment, resort management, restaurants and leisure through his investments in public and private limited corporations.
According to Forbes, the 63-year-old businessman and entrepreneur's net worth as at July this year was US$990 million (RM4.09 billion).
Tan, who retired after 23 years from the day-to-day operations of Tropicana in 2015, is selling 50.1 per cent of his private firm Peluang Duta Sdn Bhd (PDSB) to the group which he founded in 1992 for RM49.05 million.
PDSB's 70 per cent-owned subsidiary, T Sanctuary Development Sdn Bhd, owns two plots of land measuring 133.182ha in Johor. The land has been earmarked for a mixed development project with a potential net gross development value (GDV) of RM4.3 billion.
The proposed project will comprise 70 per cent residential and 30 per cent commercial, which includes terraced houses, shop offices, urban affordable homes, serviced apartments and an international school.
Tropicana said in a filing with Bursa Malaysia recently that the total purchase consideration was based on RM40 per square foot (psf), which is about 11 per cent discount from the indicative market value of RM45 psf.
Tropicana has entered into a conditional share sale agreement with Tan and his children to acquire the stake in PDSB. This is deemed a related party transaction, as Tan, who is responsible in the development of the Tropicana Golf & Country Club in Petaling Jaya, is a major shareholder of Tropicana with about 70 per cent direct and indirect stakes.
His children—Datuk Dickson Tan Yong Loong and Dion Tan Yong Chien—are the group's deputy group chief executive officer and group managing director, respectively.
Dickson Tan and Dion Tan, as well as Danny Tan's other children, Dillon Tan Yong Chin and Diana Tan Sheik Ni are also major shareholders and directors of PDSB.
Tropicana expects to complete the proposed acquisition of PDSB next month.
Meanwhile, the group said it is bullish on the Johor market, taking into account the increased transaction volume by 11.6 per cent in the first quarter of this year compared with the preceding quarter last year.
"The residential sector remains dominant in the overall property market," it said.
Commenting on Tropicana Danga Cove, the group's project in Iskandar, Johor, it said the first residential phase, Ayera Residences has been well received witha100 per cent take-up for the non-Bumiputera units.
Tropicana is launching the second phase in the fourth quarter of this year.
"Riding on the success of Tropicana Danga Cove, this proposed acquisition is timely as it allows the group to increase its land bank size in prime locations in Johor that have positive development value, which can be unlocked immediately upon completion of the proposed acquisition," said Tropicana.
The 112.09ha Tropicana Danga Cove has a projected total GDV of about RM7 billion.
Tropicana is also developing Tropicana Danga Bay in Johor.