KUALA LUMPUR (Aug 10): Rapid Synergy Bhd’s wholly-owned subsidiary Persiaran Eksklusif Sdn Bhd (PESB) is disposing of two pieces of land to Dunnes Sdn Bhd for RM16 million cash, which will be utilised mostly for working capital and the redemption of a loan.

In a filing with Bursa on Thursday (Aug 10), the company announced that PESB has entered into a sale and purchase agreement (SPA) with Dunnes for a piece of freehold land located in Sitiawan, Perak measuring 5,493 square metres, including a 1½-storey supermarket building.

Additionally, PESB has also disposed of a vacant piece of freehold commercial land measuring approximately 4,840 sq m for use as a car park.

The company said its board views the sale consideration “justifiable” after taking into consideration the net book value of the properties, which are currently charged to CIMB Islamic Bank.

The company stands to incur a gain of approximately RM7.8 million from the proposed disposal after considering the properties’ net book value of RM7 million as at July 31, 2023, related expenses of RM300,000 and real property gains tax of RM900,000.

After the proposed disposal, which is expected to be completed by the fourth quarter, the group is expected to lower its net gearing to 0.81 times from 0.88 times as at Dec 2021.

Notably, the properties are presently tenanted to Econsave Cash & Carry (MJ) Sdn Bhd, but upon completion of the SPA, the tenancy agreement shall automatically be terminated by mutual agreement in accordance with the provisions of the SPA.

Additionally, PESB has received a notice of lease dated March 20, 2020 from Tenaga Nasional Bhd about the lease of a substation situated in a section of the property. However, the presentation of the registration of the lease has yet to be performed, it added.

Rapid Synergy shares closed 12 sen or 0.53% lower at RM22.56, implying a market capitalisation of RM2.41 billion.