Advance Synergy unit buys 70% interest in commercial building blocks for RM40.95m

PETALING JAYA: Advance Synergy Bhd’s unit Advance Synergy Realty Sdn Bhd is acquiring 70% interest in two units of detached commercial building blocks located in Kuala Lumpur and Shah Alam for RM40.95 million cash, in a bid to expand its business into property investment and enter the Peninsula Malaysia market.
In a filing with Bursa Malaysia, the group said its unit entered into two sale and purchase agreements with Petaling Garden Sdn Bhd and Temasya Development Co Sdn Bhd respectively, for the proposed acquisition.
Petaling Garden is wholly-owned by I&P Group Sdn Bhd, while Temasya Development is 66%-owned by Petaling Garden and 30%-owned by UDA Holdings Bhd.
Advance Synergy said the proposed acquisition is a strategic investment opportunity for the group to strengthen its asset base and that it will contribute positively to its future earnings given the prospects of the long-term growth and demand for co-working and serviced office spaces in Klang Valley, Malaysia and the region.
It will fund the purchases internally and/or through bank borrowings. The exercise is to be completed in the first half of 2018.
Advance Synergy closed unchanged at 14.5 sen, with one million shares done.