KUALA LUMPUR (Jan 16): Kuching-based Advance Synergy Bhd is acquiring two commercial properties — one located in Jalan Yap Ah Shak here and the other at Temasya Glenmarie, Shah Alam — for a combined RM40.95 million.

In a filing with Bursa Malaysia today, Advance Synergy said its wholly-owned subsidiary Advance Synergy Realty Sdn Bhd has signed a sale and purchase agreement with Petaling Garden Sdn Bhd for the proposed acquisition of a 70% stake in a detached commercial five-storey building block in Jalan Yap Ah Shak for RM18.9 million.

Separately, Advance Synergy Realty signed a deal with Temasya Development Co Sdn Bhd for a 70% stake in a detached commercial four-storey building in Temasya Glenmarie for RM22.05 million.

Petaling Garden is wholly owned by I&P Group Sdn Bhd, a wholly-owned unit of S P Setia Bhd, while Temasya Development is a 66.06%-owned subsidiary of Petaling Garden and a 30.1% associate of UDA Holdings Bhd.

The remaining 30% interest in both properties will be acquired by Kibar Konsep Sdn Bhd, which is controlled by Advance Synergy's non-independent, non-executive director Aryati Sasya, her brother, and Advance Synergy executive deputy chairman Anton Syazi Ahmad Sebi.

"The proposed acquisition forms part of Advance Synergy's new strategy to expand into property investment and diversify its property business from East Malaysia to Peninsular Malaysia," the group said.

"With the strategic location of the properties, the group believes that the proposed acquisition will contribute positively to future earnings, given the prospects of the long-term growth and demand for co-working and serviced office spaces in the Klang Valley."

It added that the potential rental income from the properties will provide Advance Synergy with an additional source of recurring income and is a strategic investment opportunity for the group to strengthen its asset base.

Both purchases will be funded by Advance Synergy's internal funds and/or bank borrowings, and are subject to the approval of the Economic Planning Unit.

"Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in the first half of 2018," it said.

Shares in Advance Synergy closed unchanged at 14.5 sen today, giving it a market captialisation of RM98.28 million.