Awantec selling Cyberjaya office building for RM25m

• Seven floors of the property, totalling 35,904 square feet, are rented to Commerce Dot Com Sdn Bhd while the remaining floor, encompassing 4,471 square feet, serves as an office for Awantec and its units.

KUALA LUMPUR (Jan 31): AwanBiru Technology Bhd (KL:AWANTEC) is disposing of an eight-storey office and retail building in Cyberjaya to tenant Puncak Hartanah Intelek Sdn Bhd for RM25 million.

Awantec’s wholly owned unit Awantec Systems Sdn Bhd inked various sale and purchase agreements with Puncak Hartanah Intelek for the property sale, according to the cloud-based service provider’s bourse filing on Friday.

Seven floors of the property, totalling 35,904 square feet, are rented to Commerce Dot Com Sdn Bhd while the remaining floor, encompassing 4,471 square feet, serves as an office for Awantec and its units.

Commerce Dot Com wholly owns Puncak Hartanah Intelek, the property purchaser, according to Awantec.

The property disposal serves as part of the company’s plan to divest non-core assets, and improve its financial position and cash flow.

Awantec explained the property was acquired back in August 2017 for RM23.98 million to support the company’s contractual requirements of the Sistem Kawalan Imigresen Nasional contract it secured at the time.

The contract was later terminated by the government in December 2018, according to the company.

Proceeds from the property sale will go mostly to fund the company’s working capital as well as repayments of a term loan tied to the property.

“The settlement of the bank loan tied to the property will result in annual cash flow savings of approximately RM2.7 million,” Awantec said.

“Additionally, the disposal is expected to yield yearly cost savings of about RM700,000 related to loan expenses, upkeep and maintenance,” it added.

Awantec booked a carrying value of RM24.18 million for the property as at end-June 2024 as per a valuation conducted by independent valuation firm Mohd Nor & Partners (Kajang) Sdn Bhd.

The property disposal is expected to be completed within six months or by end-July.

Shares in Awantec ended unchanged at 34 sen, valuing the company at RM268.6 million.

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