KUALA LUMPUR: TRC Synergy Bhd’s wholly-owned subsidiary TRC (Aust) Pty Ltd (TRCA) is selling a freehold land measuring 3,621 square metres in Melbourne, Australia, for AU$9.66 million (about RM32.16 million).

The proposed sale is expected to give it a net gain on disposal of about RM4.4 million or 1 sen per share, TRC Synergy said in a filing with Bursa Malaysia today.

TRCA inked an agreement with Forza 588 Swan Street Pty Ltd for the proposed land sale on July 14. The plot, known as S88, forms part of the land described as lot S9, measuring 6,830 square metres, which was acquired by TRCA on Dec 9, 2011 for AU$11.5 million (about RM36.89 million.) 

Lot S88 now houses three single- and double-storey buildings.

The proceeds from the disposal, TRC Synergy said, are expected to be utilised for impending development activities by TRCA and/or to finance payment of bank borrowings, working capital, as well as land-related expenses of TRCA.

Additionally, the disposal will enable TRCA to capitalise the potential value of its landbank, as well as generate income and give financial support for the company for its imminent development activities in Australia.

TRC Synergy said the proposed disposal is conducted on an “as is where is basis” at the current competitive market value, with vacant possession and free from encumbrances, whereas the price of AU$9.66 million was determined on a “competitive tender basis”.

TRC Synergy's shares gained half sen or 0.7% to settle at 72 sen today, giving it a market capitalisation of RM343.56 million.