Tropicana Corp Bhd has called off an agreement with PowerChina International Group Ltd and Sinohydro Corp (M) Sdn Bhd to develop Tropicana Paradise in Genting Highlands and is revising the masterplan.
Its wholly-owned subsidiaries Tropicana Inspirasi Indah Sdn Bhd and Tropicana Inspirasi Impian Sdn Bhd signed a Memorandum of Agreement with PowerChina's wholly-owned unit, Sinohydro, in February 2022 to develop the 308-acre integrated hub
Tropicana informed the stock exchange in November 2022 that the MoA had not undergone any significant developments. It was the third announcement by the developer.
The first was on May 10, and the second was on August 10. In both announcements, Tropicana stated that there had been no substantive progress on the MoU.
Tropicana Paradise is part of the 596-acre Tropicana WindCity development in the highlands.
The project will include 1.5 million square feet of retail space, serviced apartments, branded residences, and 4- and 5-star international hotels.
Additionally, it will feature transit options, including a thorough cable car system, and an electric tram system.
Tropicana told the stock exchange last Friday that the masterplan is being revised in light of the local environmental factors as well as market demand.
"The company plans to recreate another signature Tropicana township at the mid-hills of Genting to continue its business sustainability," it said.
As part of this exercise, the MoA between Tropicana Inspirasi Indah, Tropicana Inspirasi Impian, PowerChina, and Sinohydro will be called off, it said.
Tropicana recorded a greater net loss of RM121.21 million for the nine months ended September 30, 2022 (9MFY2022) as versus to RM60.11 million in 9MFY2021, due to higher general and administrative costs.
Its short-term loans increased to RM1.14 billion from RM544.64 million, while long-term loans fell to RM2.66 billion from RM3.37 billion.