PETALING JAYA (July 8, 2026): Propel Global Bhd has proposed to dispose of two leasehold industrial properties in Bandar Baru Bangi, Selangor, for a combined cash consideration of RM6.75 million as part of its strategy to unlock value from non-core assets and strengthen its financial position.

The disposal will be carried out through Propel Engineering Sdn Bhd (PESB), a wholly-owned subsidiary of Propel Oilfield Services Sdn Bhd, which is 49%-owned by Propel Global.

PESB has entered into two separate sale and purchase agreements (SPAs) with Flint Masters Sdn Bhd and Chocofac (Malaysia) Sdn Bhd for the sale of the industrial properties.

Disposal involves two Bangi industrial properties

The properties are located at Jalan P/8, Peringkat 2, Kawasan Perusahaan Bandar Baru Bangi, Selangor.

The assets comprise:

Property 1: No. 9, Jalan P/8, Bandar Baru Bangi, measuring approximately 990 sq m.

Property 2: No. 11, Jalan P/8, Bandar Baru Bangi, measuring approximately 990 sq m.

Both properties are held under 99-year leasehold titles, expiring on September 29, 2086, and are designated for industrial use.

Each property has an audited net book value of approximately RM3.4 million as at June 30, 2025, and is currently charged to OCBC Bank (Malaysia) Bhd.

Sale price aligned with market valuation

Each industrial property will be sold for RM3.375 million, bringing the total disposal consideration to RM6.75 million.

The selling price was determined on a willing-buyer, willing-seller basis, taking into consideration an independent valuation report dated March 17, 2026, which valued each property at RM3.4 million.

The valuation was prepared for financing purposes and reflects that the disposal price is close to the property's current market value.

Properties no longer required for operations

Propel Global said PESB originally acquired the Bangi industrial properties to support its operational requirements.

However, the company vacated the properties in 2024, and the assets are no longer considered strategically important to the group.

By disposing of the properties, Propel Global expects to reduce ongoing ownership costs, including maintenance, repairs and property management expenses, while releasing capital previously tied up in unused assets.

Proceeds to support business operations and reduce debt

The RM6.75 million proceeds will be utilised for several purposes:

RM3.95 million for PESB's working capital requirements, including raw materials, spare parts, consumables, manpower costs, salaries, rental expenses and utilities for HVAC services, technical services and construction-related projects.

RM2.5 million to redeem a trade facility secured by the properties, which is expected to generate interest savings.

RM300,000 for estimated disposal expenses such as legal fees, professional fees, taxes and related costs.

Any excess proceeds after expenses will be channelled towards PESB's general working capital needs.

Limited financial impact expected

The proposed disposal represents approximately 7.5% under Bursa Malaysia's Main Market Listing Requirements percentage ratio calculation.

Propel Global stated that the transaction:

Will not affect the company's issued share capital or substantial shareholders' shareholdings.

Is not expected to materially affect net assets or gearing for the financial year ending June 30, 2027.

Is not expected to have a significant impact on earnings or earnings per share.

Completion of the disposal remains subject to obtaining State Authority consent for the transfer of ownership. Subject to all conditions being fulfilled, the transaction is expected to be completed by the fourth quarter of 2026.

Key Takeaways

Propel Global is monetising two unused industrial properties in Bandar Baru Bangi for RM6.75 million as part of a capital recycling strategy.

The disposal price is close to the independent valuation of RM3.4 million per property, indicating market-based pricing.

The properties were previously used for operational purposes but became non-core after PESB relocated in 2024.

The transaction allows the company to reduce holding costs associated with vacant industrial assets.

Most of the proceeds will be redirected into business operations, including working capital funding and project execution.

Repayment of the trade facility is expected to reduce financing costs and improve cash flow efficiency.

The disposal highlights how companies can unlock value from underutilised industrial assets and redeploy capital into higher-priority business activities.