KUALA LUMPUR: Awanbiru Technology Bhd
(Awantec)’s wholly owned subsidiary, Awantec Systems Sdn Bhd, has entered into eight separate sale and purchase agreements (SPAs) with Puncak Hartanah Intelek Sdn Bhd to dispose of an eight-storey office building for RM25 million.
The agreements cover the sale of each floor in the semi-detached signature corporate office and retail building in Sepang, Selangor.
In a Bursa Malaysia filing today, Awantec said seven floors, totalling 35,904 square feet, are currently leased to Commerce Dot Com Sdn Bhd as business office space.
The remaining floor, covering 4,471 square feet, serves as the operational office for Awantec and its subsidiaries.
"The disposal is part of the group’s rationalisation plan to divest non-core assets, strengthen its financial position and improve cash flow.
"The sale will reduce borrowings, generate additional proceeds, and create cash flow savings from loan repayments, which can be redirected to business operations,” it said.
The company said settling the bank loan tied to the property would result in annual cash flow savings of about RM2.7 million.
It expects further yearly cost savings of approximately RM0.7 million from reduced loan expenses, upkeep and maintenance.
"Subject to the fulfilment of all conditions in the SPAs and barring unforeseen circumstances, the board anticipates completing the disposal within six months from the date of the SPAs,” it said.
The property was originally acquired to support the business and contractual requirements of the Sistem Kawalan Imigresen Nasional (SKIN) project, awarded to Awantec’s subsidiary, Prestariang SKIN Sdn Bhd (PSKIN), on Aug 9, 2017.
The SKIN contract, which aimed to revamp Malaysia’s immigration system, was terminated by the government on Dec 11, 2018, leading to PSKIN ceasing operations. - Bernama
