PTT Synergy Disposes Bandar Bukit Raja Factory for RM17 Million to Streamline Assets

PTT Synergy Disposes Bandar Bukit Raja Factory for RM17 Million to Streamline Assets

PETALING JAYA (July 10) — PTT Synergy Group Bhd has proposed the disposal of a freehold industrial property in Bandar Bukit Raja, Klang, for RM17 million, as part of its strategy to streamline non-core assets, reduce operating costs, and strengthen its financial position.

The disposal will be undertaken by PTT Assets Sdn Bhd (PTTA), an indirect wholly owned subsidiary of PTT Synergy, which has entered into a Sale and Purchase Agreement (SPA) with WDG Resources Sdn Bhd on July 9, 2026.

Industrial Property in Strategic Klang Location

The asset being sold is a double-storey detached factory located at:

18, Jalan Inai 2D/KU05, Bandar Bukit Raja, Mukim Kapar, Klang, Selangor

The property sits on approximately 4,987 square metres of freehold industrial land and features a gross built-up area of around 20,197 square feet. It is currently classified as an investment property.

Held under H.S.(D) 165675, PT 84377, the land is designated for light industrial use and remains subject to a charge in favour of Hong Leong Bank Bhd registered in May 2023. The factory is approximately 1.5 years old.

Disposal Expected to Generate RM2 Million Gain

The agreed purchase price of RM17 million was negotiated on a willing-buyer, willing-seller basis.

As of June 30, 2025, the property had:

  • Net book value: RM15 million
  • Original investment cost: RM11.28 million

Based on the transaction value, PTT Synergy expects to record a gain on disposal of approximately RM2 million.

The company said the disposal aligns with its ongoing efforts to rationalise non-core assets while lowering operational and maintenance expenses associated with the property.

Sale Proceeds to Reduce Debt and Support Operations

PTT Synergy plans to utilise the RM17 million proceeds as follows:

  • RM11 million for repayment of borrowings secured against the property.
  • RM6 million for general working capital, including operating expenses, staff costs, and administrative requirements.

The company expects the proceeds to be fully utilised within 12 months after completion.

Limited Financial Impact on the Group

PTT Synergy stated that the disposal is not expected to materially affect:

  • Share capital
  • Substantial shareholders' shareholdings
  • Earnings per share (apart from the one-off disposal gain)
  • Consolidated net assets
  • Gearing

The transaction also does not require shareholder approval or approvals from any government authority and is expected to be completed by the first quarter of the financial year ending June 30, 2027.

The board further confirmed that none of its directors, major shareholders, or related parties have any direct or indirect interest in the disposal.

What This Means

The transaction reflects a prudent capital management strategy by PTT Synergy. Rather than holding an investment property with ongoing maintenance costs, the company is monetising the asset to unlock cash, reduce debt, and improve financial flexibility.

For Malaysia's industrial property market, the deal also demonstrates continued demand for modern freehold industrial factories in established industrial parks such as Bandar Bukit Raja, where quality manufacturing and logistics assets remain attractive to investors and owner-occupiers.

As manufacturers continue expanding across the Klang Valley, well-located industrial facilities with relatively new buildings are expected to remain highly sought after, supporting healthy transaction activity in the industrial real estate sector.

Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.

Posted by Yao Mu Realty Sdn Bhd on 10 Jul 26