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- The group said it has, through a subsidiary, signed a sale and purchase agreement with Lotuss for the leasehold land and buildings erected on it located along Jalan Changkat Jong, Teluk Intan, Perak.
KUALA LUMPUR (Nov 7): Rapid Synergy Bhd (KL:RAPID) said on Friday it is selling its Teluk Intan commercial property, Rapid Mall Seri Intan & Giant, to Lotuss Stores (Malaysia) Sdn Bhd for RM41 million.
In a bourse filing, the group said it has, through a subsidiary, signed a sale and purchase agreement with Lotuss for the leasehold land and buildings erected on it located along Jalan Changkat Jong, Teluk Intan, Perak.
Lotuss has been leasing the ground and first floors of the mall, except for a few lots in between, since June 2020, following an agreement inked in 2019. Other parts of the building are also currently tenanted.
The property will be sold free from encumbrances—except for Lotuss' existing tenancy and those attributable to it—with vacant possession for unoccupied areas, on an “as is where is” basis.
Rapid Synergy said the proposed disposal provides an opportunity to unlock and realise the appreciating value of the property, generating cash flow to fund working capital and repay bank borrowings.
Of the RM41 million proceeds, RM25 million will be used to redeem a loan within three months from the agreement’s unconditional date, while RM14.66 million will go towards salaries and other business purposes. The remainder will be allocated for real property gains tax, solicitors’ fees, and assessment, quit rent and disbursement expenses.
Rapid Synergy expects to complete the disposal within six months. The company's shares rose 1.5 sen or 2.6% to close at 59 sen on Friday, valuing the company at RM63.1 million.
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