redefining the art of living 20 22 ANNUAL REPORT
Incorporated in 1979, Tropicana was listed on the Main Market of Bursa Malaysia Securities Berhad in 1992. In 2013, the group underwent a rebranding exercise and has since become one of the country’s top conglomerates with diversified business interests in Property Development & Property Management, Property Investment, Recreation & Resorts, Investment Holdings, and more. With over 40 years of expertise, the Group has raked in over 136 awards. In 2022 alone, it was lauded with more than 12 accolades, ranging from Top 10 Developers to Outstanding Design¹. This achievement is testimony to its outstanding calibre as a property developer of high esteem. OUR VISION Tropicana strives to be the leading property group that delivers innovative and quality products that enhance stakeholders’ value. OUR BUSINESS PRINCIPLES Customers Come First We owe our success to our loyal customers. They are the driving force behind our success. Bringing quality and innovative products with a human touch is our key priority, as we pledge to continue engaging with our customers on various fronts. Commitment To Our Shareholders With the aim of providing sustainable strategies, full accountability, business continuity, and profitability, we strive to create maximum shareholders’ value. People Are Our Greatest Assets As we aim to deliver the best, the dedication of our team is of utmost paramount and so we encourage a culture of excellence and leadership in our people so that greater success can be achieved. Teamwork With a strong foundation in building a nurturing organisation that possesses shared values and culture, we are driven and motivated to think and deliver as One Team and One Organisation with One Vision. Communities As a township builder, our impact leaves a lasting legacy on the community, be it directly or indirectly. Via our corporate social responsibility programme, Tropicana Foundation, we vow to champion the underprivileged, incorporate environmental sustainability, enhance economic development, and improve health, as well as education programmes. ¹Tropicana Gardens Office Tower’s outstanding design earned the Silver Award in the Corporate Offices category at the Malaysian Institute of Interior Designers (“MIID”) REKA Awards. ABOUT US
WHAT’S INSIDE GROUP OVERVIEW 06 2022 at a Glance 08 Corporate Information 09 Our Milestones 10 Corporate Structure 12 Awards & Accolades 14 Events & Highlights TROPICANA SUSTAINABILITY STATEMENT 44 Tropicana Sustainability Statement 62 Planet: Environmental Sustainability 76 People: Social Sustainability 98 Partnership: Sustainability Governance FINANCIAL STATEMENT & OTHER INFORMATION 142 Statement of Directors’ Responsibility 143 Financial Statements 285 Analysis of Shareholdings 288 A nalysis of Irredeemable Convertible Preference Shareholdings 289 List of Properties 305 Group Directory 307 Notice of Forty-Fourth Annual General Meeting 315 Administrative Guide & Proxy Form 01 03 GOVERNANCE 106 Directors’ Profile 113 Senior Management Profile 117 Corporate Governance Overview Statement 131 Additional Compliance Information 132 Statement on Risk Management & Internal Control 138 Audit Committee Report 04 05 MANAGEMENT DISCUSSION & ANALYSIS 18 Management Discussion & Analysis 19 Overview & Market Outlook 20 Our Priorities 21 Our Launched Developments 23 Upcoming Developments 24 Market Traction & Future Growth 27 U nlocking Our Landbank 28 Investment Properties 29 Commitment to Excellence 30 Performance at a Glance 32 Financial Highlights & Insights 34 Value Added Statement 35 Investor Relations 36 Quality Commitment 38 Quality Finish 02
TROPICANA GOLF & COUNTRY RESORT Petaling Jaya, Selangor Residential Ana & Bella linked houses Casa Tropicana condominiums Cora & Dora semi-detached houses Green Acres 1 Gloria & Floria semi-detached houses Green Acres 2 linked houses & semi-detached houses, bungalows & prime bungalow lots Eva townhouses Tropicana Grande golf-fronted condominiums Mixed-use Development & Commercial Merchant Square shop offices Tropicana Avenue retail, offices & serviced apartments TROPICANA INDAH RESORT HOMES Petaling Jaya, Selangor Residential Adam & Eve linked houses Casa Indah 1 & 2 condominiums Grand Villas bungalows Green Haven bungalow lots Green Haven 1 resort villas Golf Villas bungalows Link Villas linked houses Mustika & Persona linked houses Pool Villas semi-detached houses Romeo & Juliet linked houses Villa Green 1 linked bungalows Villa Green 2 semi-detached houses Villa Green semi-detached houses 3 DAMANSARA (formerly known as Tropicana City) Residential Casa Damansara 1 & 2 condominiums Tropicana City Tropics serviced apartments Retail & Commercial Damansara Intan e-Business Park Tropicana City Mall (Rebranded to 3 Damansara) Tropicana City Office Tower OTHER TOWNSHIPS AT KLANG VALLEY Residential Casa Kiara 1 & 2 condominiums, Mont’ Kiara, Kuala Lumpur* Casa Suites apartments, Petaling Jaya, Selangor Fortune Park apartments, Kuala Lumpur Tropicana Cheras linked houses, semi-detached houses & bungalows, Cheras Tropicana Miyu Condominium, Petaling Jaya, Selangor**** Mixed-use Development, Commercial, Hospitality & Education St. Joseph’s Institution International School Malaysia (Tropicana PJ Campus) Sri KDU International School at Tropicana Metropark, Subang Jaya, Selangor Tenby International School at Tropicana Aman, Kota Kemuning, Shah Alam The Residences & W Kuala Lumpur Hotel, Kuala Lumpur Tropicana Gardens mixed-use development & Tropicana Gardens Mall, Tropicana Indah Tropicana Aman mixed-use development, Kota Kemuning, Shah Alam Tropicana Heights mixed-use development, Kajang Tropicana Metropark mixed-use development, Subang Jaya Arena Mentari shop offices, Dataran Mentari, Petaling Jaya, Selangor** TSB Commercial Centre, Sungai Buloh PENANG, JOHOR, LANGKAWI, GENTING HIGHLANDS & SABAH Residential 10 Island Resort condominiums, Batu Ferringhi, Penang* Aston Villa linked houses, semi-detached & shop offices, Bukit Mertajam, Penang Tropicana Landmark condominiums, Kota Kinabalu, Sabah Mixed-use Development Tropicana 218 Macalister mixed-use development & Courtyard by Marriott, Penang Tropicana Danga Bay mixed-use development, Iskandar Malaysia, Johor*** Tropicana Danga Cove mixed-use development, Iskandar Malaysia, Johor*** Tropicana Grandhill mixed-use development, Genting Highlands, Pahang Tropicana Avalon mixed-use development, Genting Highlands, Pahang & Selangor Tropicana Paradise mixed-use development, Genting Highlands, Pahang Tropicana Cenang, Langkawi, Kedah Tropicana Uplands, Gelang Patah, Johor Retail, Commercial & Industrial T Industrial Park, Iskandar Malaysia, Johor Note: * Project Manager ** Joint-venture project with Aliran Firasat Sdn Bhd *** A joint-venture between Tropicana Corporation Berhad & Iskandar Waterfront Sdn Bhd **** A joint-venture between Tropicana Corporation Berhad & Temokin Holdings Sdn Bhd SIGNATURE DEVELOPMENTS 04 ANNUAL REPORT 2022
GROUP OVERVIEW 06 2022 at a Glance 08 Corporate Information 09 Our Milestones 10 Corporate Structure 12 Awards & Accolades 14 Events & Highlights 01 ART OF LIVING At Tropicana, we strive to create a harmonious space that redefines the Art of Living
3 2 16 17 5 11 6 4 21 1 7 8 9 10 12 13 14 15 20 19 18 24 21 25 23 22 TOTAL PROPERTY SALES RM1.3 billion in FY22* PRESTIGIOUS AWARDS Won more than 136 awards to-date Bagged 12 notable awards in 2022: • 1 International Property Awards 2022-2023 • 1 Malaysia Institute of Interior Designers (“MIID”) REKA Awards • Top 10 Developers at The Edge Malaysia Property Excellence Awards 2022 (“TEPEA”) • 3 StarProperty Awards 2022 • 1 PropertyGuru Asia Awards Malaysia 2022 • Top 10 Developers by BCI Asia Awards 2022 • 3 ASEAN Property Developer Awards 2022 including Best Developer Award • 1 FIABCI Malaysia-Star Malaysia Developer Awards 2022 AT A GLANCE TEAMWORK Over 800 employees Servicing property owners from 23 countries around the world COMMUNITY Tropicana Foundation donated over RM26 million since its inception in 2011 TOTAL REVENUE RM942.6 million in FY22* CURRENT LANDBANK 2,091 acres* NET ASSETS PER SHARE RM2.17 in FY22* TOTAL POTENTIAL GDV RM203.7 billion* TOTAL DEVELOPMENT Over 60 completed developments with 10 ongoing townships Over 20,000 units sold *AS OF 31 DECEMBER 2022 06 ANNUAL REPORT 2022
5 10 1 2 3 4 Central 9 6 7 8 12 13 11 14 15 16 17 Northern Southern Eastern 26 18 19 20 24 21 22 23 25 26 T INDUSTRIAL PARK 07 GROUP OVERVIEW
CORPORATE INFORMATION As at 23 March 2023 BOARD OF DIRECTORS Tan Sri Dato’ Sri Mohamad Fuzi Bin Harun Chairman, Independent Non-Executive Director Tan Sri Dato’ Tan Chee Sing Group Executive Vice Chairman Dion Tan Yong Chien Group Managing Director Jared Ang Tzer Shen Group Executive Director Dato’ Dickson Tan Yong Loong Group Non-Independent Non-Executive Director Mohd Najib Bin Abdul Aziz Independent Non-Executive Director Datuk Wira Lye Ek Seang Independent Non-Executive Director Alice Dora Boucher Independent Non-Executive Director Vivienne Cheng Chi Fan Independent Non-Executive Director Dato’ Sri Badrul Hisham Bin Abdul Aziz Independent Non-Executive Director Dato’ Mohamad Lotfy Bin Mohamad Noh Independent Non-Executive Director Datuk Tan Mann Chai, JP Independent Non-Executive Director AUDIT COMMITTEE Mohd Najib Bin Abdul Aziz (Chairman) Alice Dora Boucher Vivienne Cheng Chi Fan RISK MANAGEMENT & SUSTAINABILITY COMMITTEE Alice Dora Boucher (Chairperson) Datuk Wira Lye Ek Seang Vivienne Cheng Chi Fan Dion Tan Yong Chien Jared Ang Tzer Shen NOMINATION COMMITTEE Datuk Wira Lye Ek Seang (Chairman) Mohd Najib Bin Abdul Aziz Alice Dora Boucher REMUNERATION COMMITTEE Dato’ Mohamad Lotfy Bin Mohamad Noh (Chairman) Datuk Wira Lye Ek Seang Mohd Najib Bin Abdul Aziz Vivienne Cheng Chi Fan PRICING COMMITTEE Mohd Najib Bin Abdul Aziz (Chairman) Datuk Wira Lye Ek Seang Alice Dora Boucher Dion Tan Yong Chien Jared Ang Tzer Shen INVESTMENT COMMITTEE Datuk Wira Lye Ek Seang (Chairman) Dion Tan Yong Chien Mohd Najib Bin Abdul Aziz Jared Ang Tzer Shen Dato’ Mohamad Lotfy Bin Mohamad Noh HEAD OFFICE Unit 1301, Level 13 Tropicana Gardens O ce Tower No. 2A, Persiaran Surian Tropicana Indah 47810 Petaling Jaya Selangor Darul Ehsan T +603 7663 6888 F +603 7663 6688 REGISTERED OFFICE Unit 1301, Level 13 Tropicana Gardens O ce Tower No. 2A, Persiaran Surian Tropicana Indah 47810 Petaling Jaya Selangor Darul Ehsan T +603 7663 6888 F +603 7663 6688 AUDITORS Ernst & Young PLT Chartered Accountants Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur, Malaysia T +603 7495 8000 F +603 2095 9076 SHARE REGISTRAR Securities Services (Holdings) Sdn Bhd Level 7, Menara Milenium Jalan Damanlela Pusat Bandar Damansara Damansara Heights 50490 Kuala Lumpur Wilayah Persekutuan Malaysia T +603 2084 9000 F +603 2094 9940 COMPANY SECRETARIES Chua Siew Chuan (MAICSA 0777689) SSM PC No. : 201908002648 Chin Mun Yee (MAICSA 7019243) SSM PC No. : 201908002785 Tan Gin Ling (MAICSA 7023190) SSM PC No.: 201908002292 PRINCIPAL BANKERS Alliance Islamic Bank Malaysia Berhad Bank Kerjasama Rakyat Malaysia Berhad Public Bank Berhad Malayan Banking Berhad OCBC Bank Malaysia Berhad HSBC Amanah Malaysia Berhad United Overseas Bank (Malaysia) Berhad CIMB Bank Berhad WEBSITE www.tropicanacorp.com.my EMAIL corpcomm@tropicanacorp.com.my STOCK EXCHANGE LISTING Main Market Bursa Malaysia Securities Berhad Stock Name: TROP Stock Code : 5401 For more information on our Group Directory, please scan this QR code. 08 ANNUAL REPORT 2022
OUR MILESTONES Over the years, Tropicana has built a successful track record, winning over 136 awards along the way. We have also revolutionised the Art of Living with the more than 10 townships we have developed, and the introduction of fully-fledged facilities and parks within its vicinities. These accomplishments are also reflected in the Group’s huge success: achieving over RM17 billion in sales over the years. In 2022, Tropicana continued the momentum with these initiatives: • T ropicana Aman spread festive cheer to 50 underprivileged children with hearty luncheon. The holiday treat was organised in support of Tropicana Foundation’s humanitarian mission as the charity arm of Tropicana Participating homes included the House of Love, Rumah Ozanam Klang and Rumah Kanak-kanak Impian • T ropicana Foundation, through its Buggy of Joy donation drive, offered flood relief assistance to recent flood victims in Bentong, Selangor, and Kuala Lumpur • T ropicana on track to hit RM1.1 billion target sales by strategic offline and online marketing campaigns throughout 2021 • T ropicana swept 12 more prestigious awards: - Biggest winner at 8th PropertyGuru Asia Property Awards, including never-before-presented title of Best Developer (Central Malaysia) and the best High End Landed Development Award for Tropicana Aman – Freesia Residences; - Named Top 10 Developers in Malaysia at 16th BCI Asia Awards; - Won Top 10 Best Property Developers Award at The Edge Malaysia Top Property Developers Award (“TPDA”) • T ropicana collaborated with Tropicana Gardens Mall to launch MultiMillion Mania campaign with millions of ringgit in prizes and vouchers for home seekers and shoppers • T ropicana Foundation extended helping hand to Rumah Charis Shah Alam, Taman Sri Muda • T ropicana redefined The Art of Sharing, kicked off with Hands Build a House, But Hearts Build a Home short film • T ropicana shared prosperity with home buyers through Instant Angpau worth up to RM8,888 • T ropicana Multi-Million Mania campaign offered home buyers 10 entries in its Grand Draw. Prizes include Edelweiss SOFO unit at Tropicana Gardens and Tropicana Indah • T ropicana Aman hosts Chinese New Year celebration with charitable donations for underprivileged children for the Ti-Ratana Welfare Society Malaysia • T ropicana outperformed FY2021 property sales target, recording sales of RM1.3 billion, up by 62.4% for the financial year ended 31 December 2021 • T ropicana hosted groundbreaking ceremony for the new RM2.5 million Pantai Kok Rest and Recreation centre in Langkawi. • T ropicana Aman recorded 100% take-up for Freesia Residences and Gemala Residences • T ropicana Heights celebrated vacant possession for homeowners at Lakefield Residences in Tropicana Heights • T ropicana launched Tropicana Power Up campaign to incentivise property seekers • T ropicana Golf & Country Resort brought back Santapan 29 Malam dinner buffet for Ramadhan • Tropicana Uplands received full take-up for Aster Heights. • T ropicana Gardens Mall entered into exclusive partnership with ShopeePay and Persatuan Karyawan Malaysia • T ropicana Golf & Country Resort hosted 100 children from three orphanages during Ramadhan • T ropicana partnered with No. 1 Short Stay Management Company HostAStay as its tenancy management service provider for TwinPines Serviced Suites in Tropicana Grandhill, Genting Highlands, and Assana Serviced Suites in Tropicana Cenang, Langkawi • T ropicana celebrated vacant possession of Triana Shop Offices in Tropicana Aman • Tropicana Gardens Mall partnered with Royal Thai Embassy and Thailand’s Department of International Trade promotion to host Malaysia’s largest Thai festival, Think Thailand • Tropicana Foundation collaborated with Malaysian non-profit organisation The Lost Food Project to channel surplus food to the needy • Tropicana extended Multi-Million Mania campaign due to overwhelming response • Tropicana unveiled Tropicana WindCity in Genting Highlands • Tropicana launched improved loyalty programme T Privilege, anchored by the Tropicana 360 mobile app • Tropicana and Affin Bank tackled home financing with Home Step Fast/i campaign • Tropicana’s Multi-Million Mania campaign a success, receiving RM524.2 million in property bookings and RM10.7 million in retail sales at Tropicana Gardens Mall • Tropicana earned global recognition with International 5-Star Award in best Mixed use Development Malaysia category at the International Property Awards 2022-2023 held in the United Kingdom • Tropicana Gardens Office Tower’s design earned the Silver Award in the Corporate Offices category at the Malaysian Institute of Interior Designers (“MIID”) REKA Awards • Tropicana launched Tropicana go-go-FIT wellness campaign • Tropicana Foundation gave back to the Johor community through sponsorships and donation drives • Tropicana Gardens Mall invited Merdeka month babies for birthday treats • Tropicana hosted 20km and 80km go-go-FIT cycle event in Kota Kemuning • Tropicana rewarded T Privilege members with movie session at Golden Screen Cinemas at Tropicana Gardens Mall • Tropicana posted revenue of RM211.4 million for second quarter ended 30 June 2022 • Tropicana Golf & Country Resort brought back Nite Race run • Tropicana Gardens Mall launched Malaysia’s first and largest Singha Fest 2022 • Sports Paragon Run 2022 at Tropicana Gardens Mall and Tropicana’s go-go-FIT Park Adventure Race at Tropicana Metropark drew hundreds • Tropicana and Marriott International signed agreement to build five-star Sheraton Langkawi Resort & Spa at Tropicana Cenang, Langkawi • Tropicana Golf & Country Resort’s Nite Race drew over 250 fitness lovers • Tropicana celebrated 100% Phase 1 take-up for Tropicana Industrial Park in Iskandar Malaysia, Johor • Tropicana supported rescued pets and strays at My Pets Haven, Setia Alam and PAWS Animal Welfare Shelter in Ara Damansara • Tropicana launched Journey of a Lifetime campaign, offering European getaway • Tropicana’s Buggy of Joy annual charity drive made a return for third time • Tropicana Aman unveiled final villa series Hana Residences • Tropicana Elite team scored double podium finish at IRONMAN 70.3 Langkawi and Perhentian Island Challenge 2022 • Tropicana revenue surged 88.7% to RM32.6 million for third quarter ended 30 September 2022 • Tropicana honoured at The Edge Malaysia Property Excellence Awards 2022 (“TEPEA”) with 10th spot in Top Property Developer Awards category • Tropicana go-go-FIT The Grand Race draws crowds of fitness enthusiasts • Superheroes descended on Tropicana Gardens Mall for “The World of DC Exhibition” • Tropicana Gardens Mall launched Classic Christmas campaign • Tropicana Foundation and WOW Events Asia hosted Christmas luncheon for underprivileged children of Ti-Ratana Welfare Society and Rumah Kasih Harmoni at Tropicana Gardens Mall 09 GROUP OVERVIEW
CORPORATE STRUCTURE As at 23 March 2023 Arah Pelangi Sdn Bhd 100% Bakat Rampai Sdn Bhd 100% • Dicorp Land Sdn Bhd 100% • Tropicana City Sdn Bhd 100% - Dicasa Management Services Sdn Bhd 100% - Tropicana City Management Sdn Bhd 100% - Tropicana Kajang Hill Sdn Bhd 100% - Tropicana Parking Sdn Bhd 100% • Tropicana Indah Realty Sdn Bhd 100% - Tropicana Indah Sdn Bhd 70% Bestari Golden Sdn Bhd 100% Bestari Violet Sdn Bhd 100% Bestari Zamrud Sdn Bhd 80% Blackforest Realty Sdn Bhd 100% Daya Petaling Sdn Bhd 100% Greenforest Realty Sdn Bhd 100% Island Sands Property Management Sdn Bhd 100% (formerly known as Paradise Entertainment Hub Sdn Bhd) Marvelscape Sdn Bhd 100% Myxon (M) Sdn Bhd 100% Raintree Realty Sdn Bhd 100% Suasana Metro Sdn Bhd 70% Suci Padu Resources Sdn Bhd 100% Supreme Converge Sdn Bhd 100% • Agile Tropicana Development Sdn Bhd 30% Tropicana Acehub Sdn Bhd 100% • Lido Waterfront Boulevard Sdn Bhd 65% Tropicana Alam Sdn Bhd 100% Tropicana Aman Sdn Bhd 100% • Sapphire Step Sdn Bhd 100% Tropicana Bestari Development Sdn Bhd 100% Tropicana Bestari Properties Sdn Bhd 100% Tropicana Bestari Silver Sdn Bhd 100% (formerly known as Bestari Silver Sdn Bhd) Tropicana Cheras Sdn Bhd 100% Tropicana Danga Bay Land Sdn Bhd 100% • Desiran Realiti Sdn Bhd 100% • Tropicana Danga Bay Sdn Bhd 60% Tropicana Danga Cove Holding Sdn Bhd 100% • Tropicana Danga Cove Sdn Bhd 50% Tropicana Danga Lagoon Development Sdn Bhd 100% • Tropicana Danga Lagoon Land Sdn Bhd 100% • Tropicana Danga Lapanbelas Sdn Bhd 100% Tropicana Danga Lagoon Garden Sdn Bhd 100% Tropicana Danga Lagoon Sdn Bhd 100% • Tropicana Lagoon Sdn Bhd 100% Tropicana Danga Senibong Holding Sdn Bhd 100% • Sehati Rakyat Sdn Bhd 100% • Sejahtera Rakyat Sdn Bhd 100% • Sejati Rakyat Sdn Bhd 100% • Selesa Rakyat Sdn Bhd 100% • Sempurna Rakyat Sdn Bhd 100% Tropicana Development (Johor Bahru) Sdn Bhd 100% Tropicana Development (Penang) Sdn Bhd 100% Tropicana Development (Sabah) Sdn Bhd 100% Tropicana Development (Sg Besi) Sdn Bhd 100% Tropicana Education Management Sdn Bhd 85% Tropicana Firstwide Sdn Bhd 100% Tropicana Golf & Country Resort Berhad 100% • Spring Garden Star Sdn Bhd 51% • Tropicana Cuisines Catered Sdn Bhd 100% • Tropicana Desa Mentari Sdn Bhd 100% • Tropicana Management Services Sdn Bhd 100% • Tropicana Sungai Buloh Sdn Bhd 100% Tropicana GP Views Sdn Bhd 100% Tropicana Harapan Sdn Bhd 100% • Tropicana Temokin Sdn Bhd 51% Tropicana Inspirasi Sdn Bhd 100% • Tropicana Inspirasi Impian Sdn Bhd 100% • Tropicana Inspirasi Indah Sdn Bhd 100% Tropicana Jaya Sdn Bhd 100% Tropicana Kiara Lestari Development Sdn Bhd 100% Tropicana Kiara Lestari Land Sdn Bhd 100% Tropicana Lahad Datu Development Sdn Bhd 100% Tropicana Land (Sandakan) Sdn Bhd 100% Tropicana Land Sdn Bhd 100% Tropicana Landmark Sdn Bhd 100% Tropicana Lingkaran Utama Sdn Bhd 100% • Tropicana Southern Gallery Sdn Bhd 100% Tropicana Macalister Avenue (Penang) Sdn Bhd 100% Tropicana Makmur Arif Sdn Bhd 100% Tropicana Makmur Cahaya Sdn Bhd 100% Tropicana Makmur Duta Sdn Bhd 100% Tropicana Makmur Erat Sdn Bhd 100% Tropicana Makmur Gagah Sdn Bhd 100% Tropicana Makmur Irama Sdn Bhd 100% PROPERTY DEVELOPMENT, PROPERTY MANAGEMENT, PROPERTY INVESTMENT, RECREATION AND RESORT OPERATIONS 10 ANNUAL REPORT 2022
Tropicana Makmur Peluang Sdn Bhd 100% Tropicana Mentari Development Sdn Bhd 100% • Tropicana Sierra Sdn Bhd 100% • Urban Discovery Sdn Bhd 100% Tropicana Metro Sdn Bhd 100% Tropicana Metropark Sdn Bhd 100% • Tropicana Gems Education Sdn Bhd 100% Tropicana Properties (Klang) Sdn Bhd 100% Tropicana Properties (Sabah) Sdn Bhd 100% Tropicana Properties (Sandakan) Sdn Bhd 100% Tropicana Property Management Sdn Bhd 100% Tropicana Residences Sdn Bhd 100% Tropicana Resort Holding Sdn Bhd 100% • Tropicana Danga Bay Resort Sdn Bhd 60% Tropicana Rhythm Crest Sdn Bhd 100% Tropicana Sadong Jaya Development Sdn Bhd 100% Tropicana Sanctuary Development Sdn Bhd 70% Tropicana Scenic Development Sdn Bhd 100% Tropicana Serdang Suria Sdn Bhd 100% Tropicana Seri Aliran Sdn Bhd 100% Tropicana Seri Bakat Sdn Bhd 100% Tropicana Seri Damai Sdn Bhd 100% Tropicana Seri Dutaan Sdn Bhd 100% Tropicana Seri Fauna Sdn Bhd 100% Tropicana Seri Irama Sdn Bhd 100% Tropicana Seri Jalur Sdn Bhd 100% Tropicana Seri Jutaan Sdn Bhd 100% Tropicana Seri Meranti Sdn Bhd 100% Tropicana Seri Nipah Sdn Bhd 100% Tropicana Seri Orkid Sdn Bhd 100% Tropicana Seri Peluang Sdn Bhd 100% Tropicana Seri Resak Sdn Bhd 100% Tropicana Seri Riang Sdn Bhd 100% Tropicana Seri Segak Sdn Bhd 100% Tropicana Seri Sena Sdn Bhd 100% Tropicana Seri Tabah Sdn Bhd 100% Tropicana Seri Tujuan Sdn Bhd 100% Tropicana Sinaran Sdn Bhd 100% Tropicana Tawau Development Sdn Bhd 100% Tropicana Wisma TT Sdn Bhd 100% OTHER INVESTMENTS Advent Nexus Sdn Bhd 100% BK Utilities Sdn Bhd 100% Greenhouse Farm and Fishery Sdn Bhd 100% Megaxis Sdn Bhd 100% • Tropicana Coliseum (Ipoh) Sdn Bhd 100% • Tropicana Lido Development Sdn Bhd 100% • Tropicana Paisley Sdn Bhd 100% - Tencomurni Sdn Bhd 42% • Tropicana Plaza Sdn Bhd 100% - Mesatria Sdn Bhd 42% • Tropicana Property Services Sdn Bhd 100% • Tropicana Saujana Sdn Bhd 100% - Alam Tiasa Sdn Bhd 42% Pixelcloud Sdn Bhd 100% • Cenang Resort Sdn Bhd 70% Purple Pumkie Organic Farm Sdn Bhd 100% Tropicana Building Materials Sdn Bhd 100% Tropicana Central Department Store Sdn Bhd 100% Tropicana Central Garden Mall Sdn Bhd 100% Tropicana Collections (MM2H) Sdn Bhd 100% Tropicana Corporate Solutions Sdn Bhd 100% Tropicana Credit & Leasing Sdn Bhd 100% Tropicana Entertainment and Retail Sdn Bhd 100% Tropicana Gloves Sdn Bhd 100% Tropicana Healthcare Supplies Sdn Bhd 100% Tropicana Innovative Landscape Sdn Bhd 100% Tropicana Kemayan Development Sdn Bhd 100% Tropicana Landmark Education Sdn Bhd 100% Tropicana Laris Sdn Bhd 99% Tropicana Privilege (M) Sdn Bhd 100% Tropicana Rahang Development Sdn Bhd 100% Tropicana Shared Services Sdn Bhd 100% Tropicana SJII Education Management Sdn Bhd 100% Tropicana Solar Sdn Bhd 100% Tropicana Subang South Development Sdn Bhd 100% Ultimate Support Sdn Bhd 100% Valley Talent Solutions Sdn Bhd 99% OTHER FOREIGN INVESTMENTS Tropicana Aurora Property Pte Ltd 100% Tropicana Business Consulting (Shenzhen) Pte Ltd 100% Tropicana Investment Consulting Pte Ltd 100% Tropicana Marketplace Sdn Bhd 100% • Marketplace (Hong Kong) Limited 100% 11 GROUP OVERVIEW
AWARDS & ACCOLADES 2022 marked another significant year for Tropicana as the Group was recognised by industry peers for its strides in the property sector, garnering a total of 12 awards as listed below: INTERNATIONAL PROPERTY AWARDS 2022-2023 Tropicana Gardens – 5 Star Award – Best Mixed Use Development Malaysia MALAYSIAN INSTITUTE OF INTERIOR DESIGNERS (“MIID”) REKA AWARDS Tropicana Gardens Office Tower – Silver Award – Corporate Offices category Tropicana Gardens Office Tower’s Zen garden aesthetic and modern outlook – Notable mention THE EDGE MALAYSIA PROPERTY EXCELLENCE AWARDS 2022 Tropicana Corporation Berhad – Number 10 spot – Top Property Developers Awards category STARPROPERTY AWARDS 2022 Tropicana – All-Stars Award Tropicana Gardens and Tropicana Indah – Proximity Award (Excellence) Tropicana Gardens and Tropicana Indah – Best Integrated Transit-Oriented Development Gemala Residences, Tropicana Aman – Family-Friendly Award (Excellence) Gemala Residences, Tropicana Aman – Best Family Centric Development (Landed) Within Greater KL PROPERTYGURU ASIA AWARDS MALAYSIA 2022 Tropicana Corporation Berhad – People’s Choice Awards BCI ASIA AWARDS 2022 Tropicana Danga Cove, Iskandar Malaysia – Top 10 Developers Award category Tropicana WindCity², Genting Malaysia – Top 10 Developers Award category Tropicana Metropark, Subang Jaya – Top 10 Developers Award category ² Comprises three masterplans: Tropicana Grandhill, Tropicana Paradise and Tropicana Avalon 12 ANNUAL REPORT 2022
ASEAN PROPERTY DEVELOPER AWARDS 2022 Tropicana Corporation Berhad – Best Developer Award Tropicana Grandhill, Genting Highlands – Best Leisure Living Development Tropicana Cenang, Langkawi – Best Mixed Use Development FIABCI MALAYSIA-STAR MALAYSIA DEVELOPER AWARDS Tropicana Metropark, Subang Jaya – Transformation Special Award For more information on our awards, please scan this QR code. 13 GROUP OVERVIEW
EVENTS & HIGHLIGHTS CORPORATE MARKETING EVENTS 1. 20 JANUARY 2022 Tropicana collaborated with Tropicana Gardens Mall to launch Multi-Million Mania campaign with millions of ringgit in prizes and vouchers for home seekers and shoppers. The Grand Draw prize included the Edelweiss SOFO unit at Tropicana Gardens. 2. 7 MARCH 2022 Tropicana Aman achieves resounding success with 100% takeup of Freesia and Gemala Residences. 3. 1 APRIL 2022 Tropicana launched Tropicana Power Up campaign to incentivise property seekers. 4. 8 APRIL 2022 Tropicana Uplands celebrates full take-up of Aster Heights, its first residential precinct in the Tropicana Uplands integrated township in Gelang Patah, Johor. 5. 11 APRIL 2022 Tropicana Gardens Mall partners with ShopeePay e-wallet and Karyawan to enhance retail and digital payment experiences across its facilities. 6. 27 APRIL 2022 Tropicana partnered with No. 1 Short Stay Management Company HostAStay as its tenancy management service provider for TwinPines Serviced Suites in Tropicana Grandhill, Genting Highlands, and Assana Serviced Suites in Tropicana Cenang, Langkawi. 7. 16 JUNE 2022 Tropicana unveiled Tropicana WindCity in Genting Highlands and improved loyalty programme T Privilege, anchored by the Tropicana 360 mobile app. 8. 29 JUNE 2022 Tropicana and Affin Bank partner up to tackle home financing with Home Step Fast/i campaign. 9. 22 SEPTEMBER 2022 Tropicana Gardens Mall launched Malaysia’s first and largest Singha Fest 2022. 10. 3 OCTOBER 2022 Sports Paragon Run 2022 at Tropicana Gardens Mall and Tropicana’s go-go-FIT Park Adventure Race at Tropicana Metropark drew hundreds. 11. 6 OCTOBER 2022 Tropicana and Marriott to open Sheraton in Langkawi as tourism roars back 12. 11 OCTOBER 2022 Tropicana Golf & Country Resort brought back Nite Race run, drawing over 250 fitness lovers. 13. 18 OCTOBER 2022 Tropicana celebrates 100% Phase 1 take-up of its first industrial venture, Tropicana Industrial Park in Iskandar Malaysia, Johor. 14. 28 OCTOBER 2022 Tropicana launched Journey of a Lifetime campaign, offering European getaway. 15. 8 DECEMBER 2022 Tropicana go-go-FIT The Grand Race draws crowds of fitness enthusiasts. 16. 23 DECEMBER 2022 Superheroes descended on Tropicana Gardens Mall for “The World of DC Exhibition”. Driven by our commitment to excellence, 2022 has proven to be another eventful year, where we rolled out 14 CSR events, launched five development projects across Malaysia and initiated more than 15 innovative campaigns or events to continue to engage with our stakeholders and audience. 14 ANNUAL REPORT 2022
FOUNDATION EVENTS 1. 27 JANUARY 2022 Tropicana Foundation extended a helping hand to Rumah Charis Shah Alam in Taman Sri Muda. The charitable event saw more than 200 packs of dry goods and essentials delivered to the home for the elderly ahead of the Chinese New Year festive season. 2. 12 FEBRUARY 2022 Tropicana Aman hosted a Chinese New Year celebration event with charitable donations to underprivileged children for the Ti-Ratana Welfare Society Malaysia (“Ti-Ratana”). Held at the Tropicana Aman Property Gallery, Kota Kemuning, the event saw over 200 care packs comprising essentials and dry goods delivered to Ti-Ratana. 3. 2 MARCH 2022 Tropicana Corporation Berhad hosted a groundbreaking ceremony for the new RM2.5 million Pantai Kok Rest and Recreation (“R&R”) centre in Langkawi. The effort shows the Group’s caring side as it seeks to uplift the community in Langkawi via the R&R upgrade at Pantai Kok. 4. 23 MARCH 2022 A blood donation drive was held to showcase Tropicana Group as a caring company that looks into the welfare of its staff as well as to highlight the plight of the country’s national blood bank which is critically low on blood reserves. The move is in line with our on-going mission to Redefine The Art Of Caring. 5. 2 & 9 APRIL 2022 The charitable endeavour, called “Riuh Raya with Tropicana and OhBulan!” saw the donation of essentials, footwear, and books to Pusat Jagaan Cahaya Kasih Bestari, Shah Alam. The children were invited for a fun day of shopping and exciting activities at Tropicana Gardens Mall and The Tropicana Heights Central Park, as well as a buka puasa event at Tropicana Golf & Country Resort’s Santapan 29 Malam buffet dinner. 6. 8 APRIL 2022 Tropicana Golf & Country Resort treated 100 children from Pertubuhan Kebajikan Al Mahabbah, Pusat Jagaan Haneen Firdous, and Pusat Jagaan Kasih Murni, to its Santapan 29 Malam Iftar buffet. In line with Tropicana Foundation’s charitable goals, the initiative also saw the donation of more than 21 dry goods and essentials to the homes. 7. 22 MAY 2022 Tropicana Foundation sponsored 180 sets of goodie bags consisting of our corporate non-woven bags, cutlery sets, TGCR cookies and mineral water to the Tan Sri Muhyiddin Charity Golf event. A non-profit organisation set up with the aim to generate charity through golf, the charity golf tournament was held at Kota Permai Golf & Country Club. 8. 25 MAY 2022 Tropicana Foundation collaborated with Malaysian non-profit organisation The Lost Food Project (“TLFP”) to channel surplus food to the needy. The Lost Food Project rescues ‘lost’ (or surplus) food quality, nutritious food from going to landfills, and redistributes these food to up to 60 charities and soup kitchens, as well as numerous B40 communities who live below the poverty line. 9. 28 AUGUST 2022 Over 900 fitness enthusiasts, families and fun seekers congregated on Tropicana Aman, Kota Kemuning as Tropicana hosted its fifth signature cycling event, Tropicana gogo-FIT Cycle. Donations of essential food and care packs were also made to two homes to assist the underprivileged in and around Kota Kemuning, such as Orang Asli settlements and children in need. 10. 24 SEPTEMBER 2022 To promote healthy living to staff, Tropicana Foundation supported the Sports Paragon Run. The weekend events drew hundreds of fitness lovers for the Sports Paragon Run 2022’s 3km and 5km fun runs around Tropicana Indah and Kota Damansara, as well as Tropicana go-go-FIT Park 15 GROUP OVERVIEW
Adventure Race’s challenge stations showcasing its serene Urban Park spanning 9.2 acres in Subang Jaya. Fifty Tropicana staff were sponsored for the Sports Paragon Run 2022, in support of the ongoing Tropicana go-go-FIT health campaign and the Group’s mantra of Redefining the Art of Healthy Living. 11. 11 OCTOBER 2022 Tropicana Group shows its caring side that looks into staff welfare by holding a blood donation drive to boost the national blood bank, which is critically low on blood reserves. The second edition of the blood donation drive saw the participation of 76 staff, with 55 bags of blood collected. 12. 15 OCTOBER 2022 Tropicana Foundation extends support to more than 400 rescued pets and strays at My Pets Haven, Setia Alam and PAWS Animal Welfare Shelter (“PAWS”), Ara Damansara. The initiative saw 20 volunteers pitching in to clean cages, prepare food, and walk and feed the animals. The Foundation donated dry pet food, hand wash liquid, bleach, and soap powder in total, with the support of the volunteers, who donated their time and energy. The initiative was held at My Pets Haven on 27 September 2022 and at PAWS on 15 October 2022. 13. 1 OCTOBER & 5 NOVEMBER 2022 Tropicana Foundation extends its support for activities that are beneficial to the environment and community. In line with this, Tropicana offered its support to its in-house team in their quest to compete and win at the Perhentian Island Marathon Swim and Ironman Langkawi Malaysia. 14. 22 DECEMBER 2022 To bring cheer and add more community engagement to underprivileged children, Tropicana continues with its annual charity drive “Buggy of Joy”. The donation collected dry goods and cash for underprivileged homes in the Klang Valley. In keeping with Tropicana’s mantra of Redefining the Art of Living and Caring, the proceeds of this charity drive will be channelled to over 15 charity homes across the Klang Valley. To find out more about our future events, please scan this QR code. 16 ANNUAL REPORT 2022
PERFORMANCE REVIEW 19 Management Discussion & Analysis 21 O verview and market outlook 22 Overall Sustainability Strategy 25 Performance at a Glance 26 Financial Highlights & Insights 28 Value Added Statement 30 M arket Traction and Future Growth 32 Ahead of Market Trends & Known Risks 33 Forward Looking Statement 36 New and Upcoming Developments 39 Investment Properties 41 Investor Relations 43 ESG Preview 45 Quality Assurance 46 Quality Certification 02 ART OF TENACITY Our perseverance demonstrates our commitment to the Art of Tenacity MANAGEMENT DISCUSSION & ANALYSIS 18 Management Discussion & Analysis 19 Overview & Market Outlook 20 Our Priorities 21 Our Launched Developments 23 Upcoming Developments 24 Market Traction & Future Growth 27 U nlocking Our Landbank 28 Investment Properties 29 Commitment to Excellence 30 Performance at a Glance 32 Financial Highlights & Insights 34 Value Added Statement 35 Investor Relations 36 Quality Commitment 38 Quality Finish 02
MANAGEMENT DISCUSSION & ANALYSIS In 2022, our developments and key presence across Malaysia were strengthened by our ventures in Genting Highlands, Langkawi as well as Kuala Selangor and Southern Region, which helped to solidify the Tropicana brand and future earnings. As we move into 2023, we aim to keep this momentum going, focusing our efforts on unlocking our landbanks and driving growth. 18 ANNUAL REPORT 2022
OVERVIEW & MARKET OUTLOOK The year 2022 could best be termed as a post-pandemic recovery phase for the property sector. The road to recovery was led by government initiatives, improvements in sentiment among buyers and developers, and the opening of international borders. In this Management Discussion and Analysis (“MD&A”), we examine current market conditions, report our financial performance, reaffirm our key priorities and share the Group’s current and future road map. Focusing on Resilience Bank Negara Malaysia (“BNM”) reported gross domestic product (“GDP”) growth of 8.7% for 2022 which exceeded the 3.1% growth achieved in 2021. The strong growth indicated the recovery of consumer, business and investor confidence in the national economy. For 2023, the Malaysian economy is expected to expand at a more moderate pace amid a challenging external environment. Malaysia’s GDP growth is projected to ease to between 4% and 5%. On the property front, the National Property Information Centre (“NAPIC”) announced the double digit growth of total property transactions in 2022 amounting to 389,000, an increase of 29.5% compared to 300,497 in 2021. These positive transactions hit RM179.07 billion, reflecting the healthy growth in the sector. Additionally, backed by the government’s efforts to help the property sector, first-time homeowners are offered stamp duty exemption as well as various personal tax relief. Despite the increasingly challenging global economic environment, Tropicana has remained resilient and has even posted higher revenue of RM942.6 million in FY2022, with strong property sales backed by unbilled sales of RM2 billion as of 31 December 2022. Moving forward, the Group will maintain its focus on unlocking its prime landbank to drive growth while also continuing to develop innovative townships that are centred around its unique development DNA and ESG principles. 19 MANAGEMENT DISCUSSION & ANALYSIS
OUR PRIORITIES Redefining the Art of Living, Sharing & Engaging We will continue to focus on our key priorities and strategies as we honour our commitment to our shareholders whilst staying true to our original aspirations. In our pursuit to continue to Redefine the Art of Living, we remain steadfast in our quest to build communities where one can live, work, learn, shop, and play. 1 2 3 4 5 6Embrace technology throug e-strategies for customer engagement via Tropicana’s 360 mobile app and other digital platforms Engage with our stakeholde via ESG framework and achieve workplace synergy b providing a conducive workplace and talent retenti Prioritise our marketing and sales eorts through branding and PR as well as local and international sales Improve cost and eciency in design and planning, value engineering, cost and contract, as well as pricing and packages Focus on premium land acquisitions and unlock landbanks via smart partnerships, pocket land acquisitions, and divestment of non-revenue land Strengthen our financial position by boosting liquidity and cash flows, lower net gearing and increase market capitalisation 4 5 6Embrace technology through e-strategies for customer engagement via Tropicana’s 360 mobile app and other digital platforms Engage with our stakeholders via ESG framework and achieve workplace synergy by providing a conducive workplace and talent retention Prioritise our marketing and sales eorts through branding and PR as well as local and international sales cost and eciency n and planning, gineering, cost and as well as pricing kages n premium land ons and unlock ks via smart partnerships, and acquisitions, and ent of non-revenue land en our financial by boosting liquidity flows, lower net and increase market ation 20 ANNUAL REPORT 2022
OUR LAUNCHED DEVELOPMENTS ASTER HEIGHTS January 2022 Acres 12.57 | GDV RM 99.7 mil | Unit Type Residences Aster Heights is the first residential precinct at Tropicana Uplands’ new catalyst development in Gelang Patah, Johor. Strategically located, it consists of 193 units of 2-storey terrace houses with built-ups from 1,446 sq ft that sit on freehold land. Located in Iskandar Malaysia’s Flagship Zone B, the integrated township has excellent accessibility and caters to the consistent demand for landed property in Malaysia’s southern growth corridor. The township features a sprawling 16-acre Central Park and landscaped garden, promoting a healthy lifestyle for the residents. For more information, visit https://tropicanauplands.com.my/ GEMALA RESIDENCES March 2022 Acres 15.5 | GDV RM 166.3 mil | Unit Type Residences Gemala Residences consist of 116 units of two-storey super link homes, with built-ups from 2,400 sq ft. Set in the sprawling 863-acre township of Tropicana Aman in Kota Kemuning, each unit comes with an integrated side garden, along with larger land sizes from 32’ x 75’. With an emphasis on a climate-responsive design with open layouts, ample windows, and openings that maximise natural air flow and lighting, Gemala Residences allows homeowners the flexibility of adapting the space for living, working, or recreational use. For more information, visit www.tropicanaaman.com.my 21 MANAGEMENT DISCUSSION & ANALYSIS
MERISSA SERVICED SUITES October 2022 Acres 0.38 | GDV RM 115 mil | Unit Type Residences Merissa consists of 60 serviced suites with resort-style facilities. This vibrant development sits on a 5.3-acre freehold land with direct access to Langkawi’s Cenang Beach. The six-storey building offers units with built-up areas that range from 1,066 to 1,303 sq ft. A premium mixed development by the sea, Tropicana Cenang appeals to local and international market with a mix of serviced suites and hospitality components. Tropicana Cenang’s new gem Merissa promises to offer unique dwellings for those who seek sandy beaches, beautiful sunsets and unobstructed access as well as views to the Cenang beach. For more information, visit www.tropicanacenang.com.my OUR LAUNCHED DEVELOPMENTS HANA RESIDENCES October 2022 Acres 28 | GDV RM 403 mil | Unit Type Residences Tropicana Aman’s final villa series known as Hana Residences features 130 2- and 3-storey bungalow and 2-storey semi-detached homes. Located in the largest 863-acre township by Tropicana in Kota Kemuning, Hana Residences is envisioned as a haven for life made beautiful. Hana Residences’ elevated outlook includes lakeside views and lift access across all levels for selected units. Lot sizes range from 45’ x 80’ to 80’ x 100’ with built-ups from 4,004 sq ft to 9,052 sq ft. The development is projected for completion in Q3 2025. For more information, visit www.tropicanaaman.com.my/hana-residences.php 22 ANNUAL REPORT 2022
UPCOMING DEVELOPMENTS We are of the belief that continued demand will persist in our established, matured and developing townships. In our pursuit to be market-driven, our focus remains on unlocking the value of our landbank located strategically in the Klang Valley, Genting Highlands, Langkawi, and the Southern region. We plan to launch the following new developments in 2023: Tropicana Paradise Villa Lots, Tropicana WindCity, Genting Highlands, Pahang Tropicana Paradise Villa Lots are exclusive villa lots set amidst the Titiwangsa Mountains on the hills of Genting Highlands. With land sizes from 4,000 sq ft, the freehold land are surrounded by nearby amenities and commercial offerings including Genting Highlands Premium Outlets, Genting Sempah and Gohtong Jaya. The guarded, exclusive and limited lots feature recreational clubhouse facilities set amid the cool, natural atmosphere of the highlands. For more information, visit https://tropicanawindcity.com/ Phase 1A Terraced Homes, Puncak Alam, Selangor The 349 acres mixed-used township will include landed houses, serviced residences, as well as retail lots. Set for launch in Q4 2023, the first phase consists of terrace homes, with phase 1A offering 233 units. With its close proximity to the DASH Highway, the development promises to provide ease of connectivity to future residents. Shop Offices, Tropicana Aman, Kota Kemuning, Selangor The 100 units of shop offices are due to be launched in Q3 2023. The commercial lots will connect with the residential enclaves via walkways and bike trails, enabling residents to have easy and convenient access to enjoy an urban lifestyle. For more information, visit https://www.tropicanaaman.com.my/ SouthPlace 2 Serviced Residences and Shoppes, Tropicana Metropark, Subang Jaya, Selangor Set on freehold 88 acres of development lying within Subang Jaya and due to be launched in June 2023, SouthPlace 2 Serviced Residences and Shoppes consist of 553 units of serviced residences and 70 retail lots respectively. The two developments will complement Tropicana’s vision of creating an integrated lifestyle within an urban setting. For more information, visit www.tropicanametropark.com.my 23 MANAGEMENT DISCUSSION & ANALYSIS
MARKET TRACTION & FUTURE GROWTH A Period of Renewal As the country transitions to post-Covid-19 endemicity and the economy continues to recover, the property sector is poised for renewal. The Group is optimistic about this trend, given recent improvements in sales performance and landbanking activities. Despite ongoing challenges, our RM2 billion in unbilled sales as of 31 December 2022, provides earnings visibility beyond this year. We remain committed to monitoring key performance metrics, maintaining cost efficiency measures, and launching new developments that meet customer demand. Our experience as a master planner of integrated developments and townships allows us to adapt quickly to changing customer needs and trends. Looking forward, we plan to expand into serviced residences, commercial and landed properties in the Central, Northern and Southern Regions, as well as Genting Highlands, to further strengthen our position and contribute to future earnings. Spurring Growth Through Innovative Campaigns To maintain market traction, Tropicana launched the Multi-Million Mania campaign at the beginning of 2022, offering millions in prizes and vouchers to property seekers and shoppers. The successful campaign generated RM533.6 million in property bookings and RM10.7 million in retail sales at Tropicana Gardens Mall, which saw a 241% increase in footfall from October 2021 to June 2022. 24 ANNUAL REPORT 2022
In March, Tropicana celebrated three milestones when it achieved successful take-up of Freesia Residences and Gemala Residences in Tropicana Aman by leveraging digital initiatives and its T.Living home personalisation series. Aster Heights in Tropicana Uplands and Phase 1 of T Industrial Park in Iskandar Malaysia achieved full take-up in April and October 2022 respectively. Tropicana collaborated with Affin Bank on Home Step Fast/i campaign to ease home ownership for first-time buyers, young families, and investors by reducing upfront payment obligations and improving cash flow after possession. These collaborations demonstrate Tropicana’s commitment to innovation and smart partnerships in its efforts to Redefine The Art of Living. Additionally, the Power Up campaign launched in April, offered incentives like down payment assistance, free stamp duties on loans, MOT, double referral rewards, and SPA bonuses. Staying One Step Ahead of Market Trends With digitalisation evolving rapidly, we are fully aware of the need to keep abreast of changes in market sentiment and customer behaviour. In April 2022, Tropicana Gardens Mall partnered with ShopeePay and Malaysian artist association Karyawan to improve retail and digital payment experiences for shoppers during the Ramadhan festive season. The collaboration offered rewards for shoppers who used ShopeePay e-wallet for digital payments, while Karyawan showcased local talents at the mall’s centre court. Tropicana selected HostAStay Sdn Bhd as its tenancy management provider for the TwinPines Serviced Suites in Tropicana Grandhill, Genting Highlands and Assana Serviced Suites in Tropicana Cenang, Langkawi in May 2022. This partnership combines Tropicana’s prime 25 MANAGEMENT DISCUSSION & ANALYSIS
property portfolio in popular tourism destinations with HostAStay’s expertise in short-term accommodations. The collaboration aims to maximise the investment returns for Tropicana’s purchasers in a hasslefree way. In June 2022, Tropicana launched an improved loyalty programme called T Privilege, anchored by the Tropicana 360 mobile app, offering more benefits to its property purchasers and community. In October 2022, Tropicana launched its year-end campaign themed Journey of a Lifetime that gives property purchasers a chance to win two first-class flight tickets to a European destination of their choice. Rewarding purchasers until the end December 2022, other incentives in store were IKEA full furnishing packages worth up to RM30,000, threeday-two-night stays in Langkawi, complimentary MOT stamp duty and more, depending on the property purchased. The campaign was specifically crafted to cater to the diverse needs of property seekers, ranging from first-time buyers to business owners, upgraders, and investors. It was a resounding success, recording takeup of 202 units and gross revenue of RM270.3 million. In November 2022, Tropicana unveiled its final villa series in Tropicana Aman Hana Residences, with bespoke home personalisation services available through the T.Living programme. We will continue to roll out innovative marketing campaigns and we remain optimistic about our future growth. In FY2022, the Group recorded solid growth with RM1.3 billion in property sales. 26 ANNUAL REPORT 2022
UNLOCKING OUR LANDBANK New Expansions Buoyed by the reopening of international borders, the Group in 2022 launched up to RM1.7 billion worth of properties. We believe these campaigns will be timely and appeal to property seekers. As we continue to innovate our projects, adapting to market sentiment, we stay true to our Tropicana development DNA. The year 2022 was marked by several new launches which included Tropicana WindCity in Genting Highlands, Tropicana Aman’s Hana Residences and Gemala Residences in Kota Kemuning, Shah Alam; Aster Heights in Tropicana Uplands, Iskandar Puteri, Johor; and Merissa Serviced Suites in Tropicana Cenang, Langkawi. Tropicana also secured development rights for 363 acres of land parcels to develop a ordable, quality homes in Puncak Alam, Selangor. The development will be strategically sited with easy access to the Kuala Lumpur-Kuala Selangor Expressway (“LATAR”), Jalan Sungai Buloh, Guthrie Corridor Expressway and West Coast Expressway. Overall, Tropicana’s total landbank of 2,091 acres with a potential GDV of RM203.7 billion places the Group in a solid position to further unlock the value of its strategic landbank and deliver sustainable earnings well into the future. 27 MANAGEMENT DISCUSSION & ANALYSIS
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