KUALA LUMPUR: Advance Synergy Bhd (ASB) has agreed to sell its factory and warehouse in Shah Alam, Selangor to a unit of Mapletree Dextra Pte Ltd for RM124mil cash.
Proceeds from the proposed disposal will be utilised to repay loans and refurbish the group's hotels and a newly acquired commercial building, ASB said in a filing with Bursa Malaysia today.
The proposed disposal is expected to be completed by fourth quarter of 2019.
ASB on May 10 has entered into a conditional sale and purchase agreement with Symphony Warehouse Sdn Bhd (SWSB) to dispose a piece of industrial freehold land together with buildings and structures situated within Section 22 in Shah Alam.
"The proposed disposal provides an opportunity for the group to unlock the immediate value of the property at a value higher than the net book value of the property," it said.
'Proceeds from the proposed disposal will strengthen the cash flow position of the group."
SWSB is wholly owned unit of Singapore-based Mapletree Dextra, a real estate and property management company.
In November last year, Mapletree Dextra acquired 38.8 acres of leasehold industrial site in Shah Alam from UMW Holdings Bhd for RM288mil.