Advance Synergy to sell office, factory in Shah Alam for RM124m

TheEdge Fri, Oct 04, 2019 01:04pm - 4 years View Original


KUALA LUMPUR (Oct 4): Advance Synergy Bhd is proposing to sell a freehold industrial property in Pekan Hicom, Shah Alam, for RM124 million to an indirect unit of Singapore's Mapletree Investments Pte Ltd.

In a circular to shareholders over the proposed divestment, the group said its indirect wholly-owned subsidiary Aesbi Power Systems Sdn Bhd is planning to sell the property, which is currently used as offices and factory/warehouse, to Symphony Warehouse Sdn Bhd, which is indirectly owned by Mapletree Investments.

The property has a total lettable space of 24,285 sq m, of which 95% is taken up, and total rental chargeable of about RM160,000.

It has a market value of RM110 million, according to a valuation by Jones Lang Wootton, which puts the selling price at a RM14 million or 12.7% premium against the valuation.

The disposal is expected to result in a net gain of about RM81.68 million on the original cost of investment of RM39.99 million made in June 2003.

Out of the RM124 million sale proceeds, RM61.34 million will be used to repay borrowings within three months, while RM51.9 million will be utilised as working capital within the next 12 months.

The remainder will be used to defray expenses related to the sale.

An extraordinary general meeting will be held on Oct 31 to decide on the proposed sale.

Shares of Advance Synergy were thinly traded with only 71,300 units transacted, while its share price remain unchanged at 12.5 sen as at 12.24pm.

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