Advancecon Holdings Bhd’s wholly owned subsidiary, Advancecon Properties Sdn Bhd is disposing pieces of industrial land in Klang, Selangor for RM9.07 million.
In an exchange filing to Bursa Malaysia yesterday, the construction firm noted the proceeds from the disposal will be used to repay bank borrowing and working capital purposes within 12 months.
Advancecon added the repayments include the outstanding loan of the land purchase, its property arm’s monthly loan instalments, property agents and lawyers’ fees and income tax.
The total consideration of the disposed land was above the market valuation of RM8.4 million as appraised by Henry Butcher Malaysia (Sel) Sdn Bhd based on a report dated Aug 4, 2016.
On Aug 29, 2018, Advancecon Properties has entered into a sale and purchase agreement with Acmar Auto Parts (M) Sdn Bhd to dispose of the 15,606 sqm of land.
The firm said the proposed disposal is expected to be completed by second quarter of 2019 (2Q19). Advancecon said the disposal of the land will allow the firm to switch its workshop location from Pelabuhan Klang to Kota Puteri in Selangor.