KUALA LUMPUR (May 10): Advance Synergy Bhd, a company controlled by businessman Datuk Ahmad Sebi Bakar, is selling a piece of land in Pekan Baru Hicom, Shah Alam, Selangor to Singapore's real estate giant Mapletree Investments Pte Ltd for RM124 million.

The hotel and resort operator said it is expecting to record a net gain of RM81.82 million or 8.81 sen per share after the proposed disposal. Its original cost of investment in the land and buildings was RM39.99 million as at June 3, 2003.

The group added that it plans to use the proceeds from the proposed disposal to repay borrowings, for working capital and pay expenses in relation to the transaction.

In a filing with Bursa Malaysia today, Advance Synergy said its indirect wholly-owned subsidiary AESBI Power Systems Sdn Bhd had today entered into a conditional sale and purchase agreement with Symphony Warehouse Sdn Bhd for the proposed disposal. Symphony Warehouse is a wholly-owned subsidiary of Mapletree Dextra Pte Ltd, which is in turn a unit of Mapletree Investments.

"The proposed disposal provides an opportunity for the group to unlock the immediate value of the property at a value higher than the net book value of the property and proceeds from the proposed disposal will strengthen the group's cash flow position," it added.

The market value of the property based on the valuation by independent valuer Jones Lang Wootton was RM110 million as at Feb 21, while the latest audited net book value of the property stood at RM31.55 million as at Dec 31, 2018.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed by the fourth quarter of this year.

Advance Synergy shares closed 0.5 sen or 3.7% higher at 14 sen today, with 269,800 shares done, bringing a market capitalisation of RM130.09 million.