Tropicana Corporation Berhad Annual Report 2020

44. SIGNIFICANT EVENTS The following is a summary of material disposals of properties by the Group's subsidiaries during the financial year ended 31 December 2020: (i) On 20 January 2017, Lido Waterfront Boulevard Sdn Bhd, an indirect 65% owned subsidiary of the Group, entered into an Addendum to Reclamation Contract with China Communications Construction Company (M) Sdn Bhd to carry out reclamation, revetment, drainage and associated works on the land parcels known as Lido Waterfront Boulevard in Johor (" LIDO Land ") measuring 659,638 square metres of development land and 19,020 square metres of boardwalk for a total contract sum of RM552,577,897. Part of the contract sum will be paid by the way of contra of the parcels of LIDO Land measuring approximately 47,020 square metres delineated in Plot 11, Plot 12 and Plot 13. One of the LIDO land, Plot 11 measuring 16,204 square metres was set-off for total consideration of RM104,648,544 upon the fulfillment of conditions precedent on 1 July 2020. Accordingly, gain on disposal of RM92,530,834 was recognised in the profit or loss. One of the LIDO land, Plot 13 measuring 15,729 square metres was set-off for total consideration of RM101,590,632 upon the fulfillment of conditions precedent on 7 December 2020. Accordingly, gain on disposal of RM89,488,136 was recognised in the profit or loss. (ii) On 6 February 2018, Tropicana GP Views Sdn Bhd, a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with Splendid Pavilion Sdn Bhd, for disposal of two pieces of freehold land measuring approximately 315,661 square metres in Johor for a total consideration of RM149,000,000. Accordingly, gain on disposal of RM73,993,005 was recognised in the profit or loss upon the fulfillment of conditions precedent on 7 August 2020. (iii) On 6 December 2019, Tropicana Development (Johor Bahru) Sdn Bhd, a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with GW Max Sdn Bhd, for disposal of a piece of freehold land with category of land use "bangunan" measuring approximately 44,840 square metres in Johor for a total consideration of RM64,500,000. Accordingly, gain on disposal of RM11,741,896 was recognised in the profit or loss upon the fulfilment of conditions precedent on 15 December 2020. (iv) On 1 August 2019, Daya Petaling Sdn Bhd, a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with JPS Global Property Sdn Bhd for disposal of a piece of leasehold land measuring approximately 1,982 square metres together with an 8-storey commercial building with a basement car park erected on the land known as "Intan Square" in Selangor for a total consideration of RM27,500,000. Accordingly, loss on disposal of RM651,529 was recognised in profit or loss upon the fulfilment of condition precedent on 11 August 2020. (v) On 20 September 2019, Tropicana Properties (Klang) Sdn Bhd, a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with 99 New Property Sdn Bhd, for disposal of a piece of freehold land measuring approximately 6,165 square metres together with a 10-storey building erected on the land known as "Casa Klang" in Selangor for a total consideration of RM30,000,000. Accordingly, loss on disposal of RM211,545 was recognised in profit or loss upon the fulfilment of condition precedent on 21 October 2020. (vi) On 6 December 2019, Tropicana Sinaran Sdn Bhd (fka Tropicana Properties (Keningau) Sdn Bhd), a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with Emas Majusama Sdn Bhd, for disposal of a piece of leasehold land measuring approximately 8,109 square metres together with a 2-storey commercial building erected on the land known as "Kelab Rekreasi Keningau" in Sabah for a total consideration amounting to RM6,200,000. Accordingly, loss on disposal of RM163,822 was recognised in profit or loss upon the fulfilment of condition precedent on 3 June 2020. (vii) On 31 December 2019, Tropicana Lido Development Sdn Bhd, a wholly-owned subsidiary of the Group, entered into a sale and purchase agreement with Perodua Sales Sdn Bhd, for disposal of five parcels of leasehold land measuring approximately 7,163 square metres, which located in Sabah for a total consideration of RM12,000,000. Accordingly, loss on disposal of RM510,693 was recognised in profit or loss upon the fulfilment of condition precedent on 31 March 2020. 44. SIGNIFICANT EVENTS (CONT'D.) The following is a summary of material acquisitions of properties by the Group's subsidiaries during the financial year ended 31 December 2020: (i) On 10 November 2020, Tropicana Inspirasi Impian Sdn Bhd (fka Elkwood Realty Sdn Bhd), an indirect 51% owned subsidiary of the Group, entered into a sale and purchase agreement with Satria Sewira Sdn Bhd for the acquisition of freehold land measuring approximately 102 acres held under H.S.(D) 2097, Lot No. PT 2134/118, Mukim of Bentong, District of Bentong, State of Pahang Darul Makmur for a total cash consideration of RM178,160,400. (ii) On 10 November 2020, Tropicana Inspirasi Indah Sdn Bhd (fka Snowflakes Realty Sdn Bhd), an indirect 51% owned subsidiary of the Group, entered into a sale and purchase agreement with Emerald Hectares Sdn Bhd for the acquisition of freehold land measuring approximately 206 acres held under H.S.(D) 2099, Lot No. PT 2136/120, Mukim of Bentong, District of Bentong, State of Pahang Darul Makmur for a total cash consideration of RM224,334,000. Outbreak of Coronavirus ("COVID-19") As at the end of the financial year, the COVID-19 pandemic that had severely impacted the financial performance of the Group for the financial year ended 31 December 2020 is still evolving. As such, the financial performance for the financial year ending 31 December 2021 is expected to remain challenging taking into account of the re-imposition of Movement Control Order (" MCO ") and the rise in COVID-19 cases in the country. The property development and property investment sectors in which the Group principally operates in, have been impacted and had experienced setbacks when the movement restriction measures resulted in unanticipated delays in development projects and temporary cessation of businesses. However, these business activities have gradually returned to normalcy as construction and property development activities, as well as other business activities are allowed to continue its operations during the subsequent phases of the movement restriction orders amidst more stringent health and safety procedures imposed by the government, and on the back of a more challenging business environment. The Group is also taking the necessary steps to mitigate the risks to its business arising from the COVID-19 pandemic, including but not limited to more emphasis placed on clearing of unsold inventories, careful rationalisation of new project launches as well as the prudent management of its cash flows. To ensure business continuity and resilience, the Group is also responding to the changing market conditions and had rolled out a series of customer-centric new developments at strategic locations by introducing a digital sales campaign to continue customer engagements, and increase sales. Despite the challenges from the COVID-19 pandemic, the Group expects that all the efforts and measures that the Group has undertaken will place the Group in a good position to unlock the values of its strategic land banks which will subsequently improve its financial performance and deliver sustainable returns to the shareholders. 45. SUBSEQUENT EVENTS (i) On 25 January 2021, the Company had incorporated a wholly-owned subsidiary, Tropicana Landmark Education Sdn Bhd with 1 Ordinary Share which representing 100% of total paid-up capital for a total cash consideration of RM1. (ii) On 15 April 2021, Desiran Realiti Sdn Bhd, an indirect wholly-owned subsidiary of the Company, had disposed a total of 1,850,000 of Ordinary Shares in Top Glove Corporation Bhd, for a total consideration of RM9,981,505 via open market transactions on Bursa Malaysia Securities Berhad. (iii) On 15 April 2021, the Company had issued Sukuk Wakalah of RM133.2 million and RM49.8 million in nominal value out of its RM1.5 billion Sukuk Wakalah Programme, with tenors of 5-year and 7-year respectively. The Sukuk Wakalah carries a senior ranking and is secured. The yield to maturity at issuance date is 5.65% and 5.80% per annum respectively. (iv) On 20 April 2021, Tropicana Golf & Country Resort Berhad (" TGCRB "), a wholly-owned subsidiary of the Company, had incorporated Tropicana Cuisines Catered Sdn Bhd (" Cuisines Catered ") with 2 Ordinary Shares which representing 100% of total paid-up capital for a total cash consideration of RM2. With this incorporation, Cuisines Catered became a wholly-owned subsidiary of TGCRB, which in turn is an indirect wholly-owned subsidiary of the Company. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 290 291