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KUALA LUMPUR: MMAG Holdings Bhd is disposing off a piece of land, together with a two-storey warehouse and three-storey office building on it for RM20.2mil cash.

The integrated supply chain management services provider, in a Bursa filing, said its wholly-owned subsidiary, MMAG Digital Sdn Bhd, had entered into a sale and purchase agreement with KGW Logistics (M) Sdn Bhd for the disposal.

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MMAG said the 4,777 sq m land is located at the Hicom Glenmarie Industrial Park in Shah Alam. The property was acquired by MMAG Digital on April 3, 2012 and the original cost of investment for the property was approximately RM10.41mil.

“The disposal is viewed positively to provide a timely opportunity for MMAG group to immediately unlock the value and monetise its investment in the property, while at the same time improve the cash flows of MMAG Group and reduce the dependency on borrowings.

“The proceeds received from the disposal could fund MMAG Group’s existing businesses and/ or any future prospective businesses,” it said.