KUALA LUMPUR (May 21): Building materials trader Ipmuda Bhd is selling off two freehold properties in Johor to Kenyin Hardware Sdn Bhd for a total of RM11.3 million.

In a filing with Bursa Malaysia, Ipmuda said the first property is a 40,396 sq ft land with a single-storey warehouse as well as an annexed 2½-storey office building and a guard house. This property is being sold at RM5.7 million for an estimated net gain to Ipmuda of RM4.09 million.

The second property is a 51,357 sq ft land with a single-storey open-sided structure and an annexed single-storey office building. The purchase price for this property is RM5.6 million with an estimated net gain to Ipmuda of RM4.18 million.

The properties were previously occupied by Ipmuda's subsidiary Ipmuda Selatan Sdn Bhd for the southern region trading operations which are now being conducted from Kuala Lumpur.

Ipmuda said the proceeds of the disposal are expected to be used for repayment of bank borrowings, property gains tax, incidental expenses related to the disposal as well as for working capital as payment to suppliers for purchase of building materials.

Last month, Ipmuda has announced the disposal of its idle factory in Rawang Integrated Industrial Park to May Chemical Sdn Bhd for RM12 million.

Ipmuda's share price rose 9.5 sen or 11.8% to close at 90 sen today with a market capitalisation of RM65.22 million.