Rapid Synergy unit disposes of two Penang industrial parcels worth RM35m

• The two leasehold parcels have a combined area of approximately 17,013 sq m and include two factory buildings which are fully occupied.

KUALA LUMPUR (Oct 21): Rapid Synergy Bhd’s wholly-owned subsidiary, Rapid Precision Technologies Sdn Bhd (RPTSB), has entered into a sale and purchase agreement with Osram Opto Semiconductors (Malaysia) Sdn Bhd, part of ams-OSRAM, for the disposal of two parcels of industrial land and buildings in Bayan Lepas, Penang, for RM35 million.

In a bourse filing on Tuesday, the two leasehold parcels, located in Mukim 12, Daerah Barat Daya, have a combined area of approximately 17,013 sq m and include two factory buildings. The properties currently serve industrial and manufacturing purposes and are fully occupied.

According to Rapid Synergy, the sale consideration was arrived at on a willing-buyer, willing-seller basis, taking into account an independent valuation of RM31 million by JS Valuers Property Consultants (Penang) Sdn Bhd. 

The transaction is expected to generate a net gain of about RM26 million, based on the properties’ net book value of RM4.67 million as at June 30, 2024.

Proceeds from the disposal will be used to redeem loans (RM6.5 million), pay real property gains tax (RM2.88 million), cover related expenses (RM1.5 million), and support working capital (RM24.12 million).

The disposal, which represents a 20.9% ratio under Bursa Malaysia’s main market listing requirements, does not require shareholder or regulatory approval and is expected to be completed within nine to 12 months.

Rapid Synergy said the transaction allows the group to unlock the value of its assets and strengthen cash flow for operational and financing purposes. The board noted that none of the directors or major shareholders have any interest, direct or indirect, in the disposal, and considers the deal to be in the best interest of the company.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.