Tropicana Seals RM383 Million Land Deal With NTT Data Group To Build Data Centre In Johor

Tropicana Seals RM383 Million Land Deal With NTT Data Group To Build Data Centre In Johor

● Tropicana Firstwide entered into RM383 million Sale and Purchase Agreement with the indirect  subsidiaries of NTT Data Group for the sale of 68.457 acres of land in Johor Bahru.

● This land sale denotes Tropicana’s agility and ability to capture the right opportunities of the  rapidly expanding digital economy while meeting the stringent land requirements for data  centre development in Malaysia.  

Tropicana Firstwide Sdn Bhd (“TFSB”), a wholly-owned subsidiary  of Tropicana Corporation Berhad (“Tropicana” or “Group”) announced the sale and purchase  agreement inked with the indirect subsidiaries of NTT Data Group (“Purchasers”) for the sale of  68.457 acres of freehold land in Gelang Patah, Johor Bahru for a cash consideration of RM383  million. The Purchasers are principally involved in the provision of infrastructure for hosting, data  processing services and related activities as well as computer facilities management. NTT Data  Group is a Japanese multinational information technology service and consulting company,  headquartered in Tokyo, Japan. 

This land sale denotes Tropicana’s agility and ability to capture the right opportunities of the  rapidly expanding digital economy while meeting Malaysia’s stringent land requirements for data  centre development. The Tropicana Management cited, “Johor has attracted more than 50 data  centres within the last two years thanks to its strong push towards the digital economy, enabled  by robust government policies, as well as good connectivity and infrastructure. Johor is  experiencing an exciting time and the rapid growth in the digital industry suggests that it is well  on its way to becoming a new data centre hub in South-East Asia. To this note, we are thrilled to  enter into this sale & purchase agreement with NTT Data Group.” 

“We support Malaysia’s vision to become a global destination for data centre operators to the  world’s largest technology companies. With Tropicana’s strong presence and sizeable landbank in  Johor, we can play an effective role for data centre operators by offering strategic lands with good  infrastructure facilities such as electricity, water and accessibility. We welcome data centre  operators or MNCs to partner with us.” 

“These initiatives are also in line with the government’s ongoing efforts to streamline the country’s  reservoir of digital talents, construct the best digital infrastructure and position itself as the  preferred investment destination. We have over 728 acres of premium landbank in Johor and will  continue to build sustainable townships as well as look for strategic partners to jointly develop the  land. We are confident that we will continue to strengthen our market presence and contribute  to our future earnings supported by our high unbilled sales of RM2.3 billion and strong take-up for  ongoing projects.” the management added. 

Tropicana inked RM383 million land deal with NTT Data Group 

(from left) Representatives of Tropicana, Mr Khoo Thian Shyang (Deputy CEO), Mr Ong Chou  Wen (CEO), Mr Din Tan (Group Managing Director), Tan Sri Dato’ Tan Chee Sing (Founder &  Group Executive Vice Chairman) together with representatives of NTT GDC Malaysia, Ho Yee  Chung (Managing Director), Mr Susumu Yoneoka (Senior Director, Finance & Sustainability,  APAC), Mr CK Soo (Director, Pre Sales & Service Operations)

TROPICANA’S LATEST DEVELOPMENT IN JOHOR BAHRU 

With the boom of the Johor property market, the state secured one of the highest foreign  investment funds totalling RM63.9 billion in 2023. Tapping into Johor’s huge potential, Tropicana  plans to develop two townships, Lido Waterfront Boulevard in Johor City Centre and Tropicana  Uplands in Gelang Patah. These two mega developments are projected to be over RM35 billion in  Gross Development Value (“GDV”). With Johor experiencing a phase of accelerated growth,  Tropicana aims to tap into this huge potential and transform these signature townships into a  dynamic metropolis of the Southern region.  

LIDO WATERFRONT BOULEVARD 

Strategically located on 163 acres of reclaimed land along the waterfront bordering Singapore,  Lido Waterfront Boulevard is an integrated mixed development with freehold status integrating  green, smart and sustainable elements. This RM34 billion GDV master development will feature  sectors such as healthcare, medical tourism, hospitality, recreational and lifestyle offering, which  are among the sectors being promoted by Johor. The first phase of Lido, The Watermark residence  is set to take off with a soft launch in Q3/Q4 2024, bearing an estimated GDV of RM1.8 billion. The  Watermark residence is within a 7-10-minute drive to the Bukit Chagar Station of the Johor Bahru Singapore Rapid Transit System (“RTS”). The new RTS Link project linking the cities of Johor Bahru  in Malaysia and Singapore will enable more than 10,000 passengers per hour to travel between  the two destinations in just 6 minutes, reducing road traffic on the Johor embankment, which  currently carries more than 350,000 vehicles each day. This will be a major step forward in  avoiding congestion in the region as well as reducing our carbon footprint. 

TROPICANA UPLANDS 

A 25-minute drive to the west of Johor Bahru is Tropicana Uplands, a new 314-acre sustainable  township that is home to residential and commercial components. This township is strategically  located a mere 15-20 minutes’ drive from the Malaysia-Singapore Second Link Expressway, the  Senai International Airport as well as the Johor State Administrative Centre and family-oriented  attractions such as Legoland. This freehold development also offers a central community park,  educational and recreational amenities designed to promote green and sustainable living. The  township’s first residential precinct – Aster Heights, achieved a remarkable 100% take-up rate for  its 193 units of two-storey terraced houses in under five months since its official launch in 2021.  In 2024, Aster Heights held the delivery of Vacant Possession to its home buyers, adding more  good news to this development. In Q3/Q4 2024, Tropicana Uplands will be unveiling Fraser  Heights, an RM387 million GDV development offering 518 units of modern double-storey and  three-storey linked homes on a 35.2-acre freehold land.

JOHOR PULL FACTORS 

Johor’s economy is experiencing rapid growth and is tipped to be Malaysia’s next economic  powerhouse. Here are 8 pull factors of Johor: 

1. Most Visited City 

Johor Bahru also referred to as JB, is a city situated at the southern end of the Peninsula of  Malaysia. It is the second largest city in Malaysia and is also one of the fastest-growing cities  in the country after Kuala Lumpur. Johor welcomed over 16 million tourists in 2023 and aims  to achieve an influx of 20 million tourists in 2024. 

2. Johor Causeway, one of the Busiest Land Border Crossings 

Recently, the Johor Causeway celebrated its 100th anniversary, marking a strong and  enduring neighbourly spirit between Malaysia and Singapore. The first link was officially  launched in 1924 followed by the Second Link bridge built in 1998 to reduce the traffic  congestion at the first Johor–Singapore Causeway. These two causeways serve and connect  approximately 450,000 travellers at the checkpoints daily. 

3. Johor-Singapore Special Economic Zone (JS-SEZ)  

The formation of the JS-SEZ is to foster stronger business connections and improve  connectivity between Malaysia and Singapore. JS-SEZ aims to attract more investments by  enhancing the business ecosystem and holistic transformation through economic synergy,  improved connectivity through RTS link and public transportation, government policies &  incentives as well as addressing talent mobility & availability. JS-SEZ will be located in Johor’s  Iskandar region and could cover an area of over 3,000 sq km, approximately four times the  size of Singapore. The JS-SEZ rides on the strong growth of Johor and significant investments  by Singapore, with Johor notably recording RM43 billion worth of investments in 2023 alone.  Of that, RM21.5 billion in foreign direct investment into the Johor state came from  Singapore, China and South Korea.  

4. New Industrial Master Plan (NIMP) 2030 

The Ministry of Investment, Trade & Security rolled out NIMP 2030, marking a significant  milestone in Malaysia’s journey towards the MADANI Economy. NIMP 2030 aims to bolster  the nation’s industries toward technological advancement, sustainability, and deeper  integration into the global value chain.  

5. Johor Bahru-Singapore Rapid Transit System (RTS) 

Due for completion in 2026, the RTS Link is a 4km light rail transit shuttle service connecting  Bukit Chagar station in Johor Bahru and the Woodlands North station in Singapore. It is  expected to serve up to 10,000 passengers per hour per direction during peak periods and  will relieve congestion at the Johor Causeway.

6. QR Code: Border crossing made simple  

The QR code system for Malaysian and Singaporean travellers aimed to expedite immigration  clearance at the Malaysia-Singapore border crossing. The QR code application can reduce  the immigration clearance time by up to 75% and clear an average of about 20 passengers in  less than five minutes. 

7. Entertainment & Shopping Centre 

Because of its strategic location, the Johor state has attracted many entertainment and  theme park operators over the years. Popular theme parks that have set up permanent or  temporary residences in Johor are Legoland, Pororo Park, Game On, Dinosaurs Alive Water  Themepark, Desaru Coast Water Park and Austin Heights Water & Adventure Park. Popular  shopping destinations are Johor Premium Outlets, Paradigm Mall, IKEA, Sutera Mall, Sunway  Big Box Village, Mid Valley Southkey and KSL City Mall. 

8. Cultural Institutions 

A melting pot of cultural enrichment, top sights include the Royal Abu Bakar Museum, Johor  Bahru Chinese Heritage Museum, Yayasan Warisan Johor, Johor Bahru Kwong Siew Heritage,  Malay Cultural Village, and the Johor Art Gallery. 

While Tropicana is already working with strategic partners in some of the developments, it  welcomes more like-minded partners to contribute to the significant growth in Johor. To discover  the world of Tropicana, visit http://www.tropicanacorp.com.my or reach out to our business  development team at bizdev@tropicanacorp.com.my for more collaboration opportunities. 

Tropicana has a sizeable landbank in the booming Johor market. One of its star developments is  the vibrant Lido Waterfront Boulevard fronting the beautiful straits of Johor

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