Danny Tan, group executive vice-chairman

Tropicana's resort-style projects set urban living benchmark

Imagine living in a lush tropical retreat and stepping out to work at a prime business location just nearby. For Tropicana Corporation, this almost idyllic picture is not just a fanciful architectural rendering, but a concrete reality. The residential and commercial developer has been Malaysia's pioneer in building outstanding resort-like developments where people can live, work and play.

Supported by:Discovery Reports

Imagine living in a lush tropical retreat and stepping out to work at a prime business location just nearby. For Tropicana Corporation, this almost idyllic picture is not just a fanciful architectural rendering, but a concrete reality. The residential and commercial developer has been Malaysia's pioneer in building outstanding resort-like developments where people can live, work and play.

By creating homes and offices in the best locations and integrating quality construction with verdant landscaping and practicality in design, Tropicana has set the benchmark in urban living. It was the first developer in the country to introduce resort-style living in its innovative projects more than 20 years ago. Generating high-appreciation value, the group's sustainable projects are a testament to the symbiotic relationship of nature and modern construction.

Tropicana's assets have increased more than fivefold, from more than HK$1.1 billion to HK$6.1 billion over the last 10 years. Enjoying a commanding spot in Malaysia's property market, the group has a land bank of more than 917 hectares, with a gross development value of almost 81.8 billion ringgit (HK$193.7 billion).

For the fourth quarter last year, group revenue increased 90 per cent to 444.7 million ringgit from 234.4 million ringgit a year before. The group registered strong growth in profit before tax (PBT) of 399 per cent to 325.2 million ringgit, while net profit attributable to shareholders surged 313 per cent to 256.5 million ringgit from 62.1 million ringgit reported in the previous corresponding quarter.

For the full financial year ended December 31 last year, group revenue rose 134 per cent to 1.48 billion ringgit as compared to 630.4 million ringgit achieved in the financial year 2012. Consequently, group PBT rose 123.9 per cent to 503.6 million ringgit from 224.9 million ringgit previously, while net profit attributable to shareholders gained 112 per cent to 362.3 million ringgit in the year under review. Property development, resort operations and property investment generate 90 per cent of Tropicana's revenues. The group is on the main board of Bursa Malaysia.

Tropicana's stellar performance last year was boosted by strong development sales over the past two years, with key contributing development projects including Tropicana Grande, Tropicana Avenue and Tropicana Gardens in Central Region (Klang Valley), and Tropicana Danga Bay at Iskandar Malaysia, Johor.

"Drawing on the strength of Tropicana's development DNA, with emphasis on location, accessibility, innovative designs, security, efficient space utilisation, and creating community of short distances, the group is confident that its new projects will continue to be well-received," says Danny Tan, group executive vice-chairman of Tropicana Corporation.

Tropicana's Klang Valley development illustrates the company's philosophy of sustainably meeting the demands of progress without compromising resources for the future. Welcoming 2014 as a year of transformation, Tropicana has widened its scope beyond the valley to transform the landscape of prime locations in Penang, Johor Bahru, Negeri Sembilan and Sabah.

Cutting-edge projects and strong fundamentals

Supplementing these core businesses is Tropicana Golf & Country Resort, a luxurious township located in the prime suburb of Petaling Jaya. Founded in 1995, the exclusive community brings the comforts of resort facilities to thousands of affluent local and expatriate residents. The high-end resort was Tan's brainchild - a success story of overcoming risks and reaping rewards for homeowners who have seen the value of their properties rise almost tenfold. Set amid the beautifully landscaped greens of the 27-hole East and West championship golf courses, the 253-hectare resort is Tropicana's most established brand. It is regarded as one of the most prestigious developments in the country and has won the prestigious International Real Estate Federation award and the International Property Awards.

The company ventured into property investment through Tropicana City, a mixed commercial development in Petaling Jaya launched in 2009. It comprises the trendy Tropicana City Mall, the avant-garde Tropicana City Office Tower, the stylish Tropicana City Tropics serviced apartments and the trendy Damansara Intan e-Business Park. For buyers looking for a more cosmopolitan lifestyle, the Casa Suites at the Damansara Intan offers stylish apartments and complete amenities.

The Tropicana City Office Tower houses the group's new headquarters, an international investment bank and one of Malaysia's leading media outfits.

The group also provides management expertise and maintenance services through its Tropicana Corporation Management Services. It manages a portfolio that includes Tropicana Golf & Country Resort, Tropicana Indah Resort Homes, Tropicana City, Casa Tropicana condominiums and other developments.

Tropicana's foray into manufacturing resulted in a pioneering producer of emulsion explosives. Tenaga Kimia Sendirian Berhad (TKSB) manufactures a complete range of blasting products and accessories. An ISO 9001:2000-accredited company, TKSB provides technical services throughout Southeast Asia and supplies the mining and construction industries with total explosives and blasting solutions.

"Success in implementing its transformation strategy has enabled Tropicana to achieve key milestones in its development activities, where new sales in 2013 reached a record high of 2.16 billion ringgit. Ongoing projects and new launches across key central, southern and northern regions enjoy strong response from buyers," Tan says.

Quality, style and sustainability

Tropicana has several prestigious projects lined up that combine residential, retail and leisure facilities in its urban apartments, contemporary condominiums and innovative mixed-use developments. It incorporates cutting-edge design while adhering to its architectural heritage in its roster of projects from office suites, retail units, golf course villas, garden bungalows and mixed commercial developments.

In central Malaysia, W Kuala Lumpur Hotel and The Residences aim to bring a distinctive factor to the capital's metropolitan landscape. Expected to be completed by 2016, the properties are located adjacent to the iconic Petronas Towers, the tallest twin buildings in the world. The luxurious Casa Kiara I and II condominiums also offer premium and spacious units within the ritzy Mont Kiara community in Kuala Lumpur.

Under construction in Selangor, Tropicana Avenue will feature modern office suites and retail units to cater to the rising bungalow development Golf Villas. Close by will be the nature-inspired mixed commercial projects Tropicana Gardens in Kota Damansara, Tropicana Metropark in Subang Jaya, Tropicana Heights in Kajang and Tropicana Cheras in Kuala Lumpur . The Arena Mentari commercial development located at the centre of the Dataran Mentari business district is also a thriving hub that attracts consumers from the surrounding areas of Bandar Sunway, Subang Jaya, Puchong, Kelana Jaya, Damansara and Shah Alam.

Tropicana's residential developments in northern Malaysia, such as the luxury development Aston Villa and hillside project 10 Island Resort, have made Penang a premium location. Tropicana 218 Macalister will rise as a luxurious integrated development at the famous Macalister Road, which is located at the heart of Georgetown. Eyed as an international gateway for tourists and investors, the 41.5-hectare Penang WorldCity in Bayan Mutiara will showcase the state as an integrated waterfront city.

In the southern region of Johor, Tropicana Danga Bay will feature luxury seafront living, while the Oasis at Tropicana Danga Cove will provide a business and retail haven at one of Malaysia's gateways to Singapore. Tropicana City Centre, a mixed integrated development, is being developed strategically at the heart of Johor. Meanwhile, Tropicana Landmark, the developer's resort-style contemporary condominium amid Sabah's lush hills, will rise as a coveted address on Kota Kinabalu's picturesque terrain.

"This is the year where we drive momentum, leading the industry with our niche developments that will translate into sustained growth," Tan says. "The group's unbilled sales at the end of 2013 was sustained at a high of 2.18 billion ringgit, a marked improvement from 952 million ringgit recorded at the end of 2012."

The projects in progress have enjoyed tremendous take-up rates since they were successfully launched. Tropicana has also maximised the promotional power of its website, where prospective buyers and investors can contact the company and view images and detailed descriptions of its projects.

Social responsibility and leadership

A self-made man from Johor whose pioneering spirit transformed Malaysia's property industry, Tan was awarded the Premier Brand Award at the BrandLaureate ICON Leadership Awards 2013 by The Asia Pacific Brands Foundation. The illustrious award recognises outstanding individuals who have contributed to the country's development and economy through innovative ideas, perseverance and hard work.

Deeply committed to giving back to society, Tan founded the Tropicana Foundation to drive forward the group's corporate social responsibility activities. The foundation is dedicated to improving the lives of underprivileged communities and aims to provide assistance by supporting local health and education focused groups and other non-profit organisations.

The foundation sponsors the Ti-Ratana Welfare Society, Persatuan Rumah KIDS, RACTAR, Federation of Chinese Associations Malaysia, Tzu Chi Foundation Malaysia, the Football Association of Johor, Hospis Malaysia, the Edge-Bursa Malaysia Rat Race, the Tan Sri Muhyiddin Charity Golf Foundation, the World Chinese Economic Forum, Foon Yew Associated Chinese Schools and SJK (C) Yeong Chang.

"Throughout 2013, the Tropicana Foundation has donated a total of 3.5 million ringgit to various organisations and causes," Tan says, crediting his mother, a devout Buddhist who was into local charity work, as the inspiration behind the establishment of the foundation.

For its years of industry leadership, social responsibility and contribution to Malaysia's economy, Tropicana scored the Super Excellent Brand Award 2013 in the Hall of Fame category. It was also awarded the Malaysia Power Brand Award last year for organisation, management and brand development.

Tropicana bagged the BCI Asia Top 10 Developers Award and the Asia Pacific Property Awards last year. The group also won the Property and Lifestyle of the Year Awards and the International Property Award for Asia-Pacific in 2012, among a long list of other recognitions.

Despite all the accolades, the soft-spoken tycoon shies away from praise and credits the group's dedicated staff, its solid corporate heritage and strong fundamentals as the true pillars of Tropicana's success.

"As we go through this transformative journey across Malaysia, one thing remains unchanged - our commitment to our principles," Tan says.


Tropicana Corporation