KUALA LUMPUR (Aug 19): Ire-Tax Corporation Bhd has proposed to dispose of a piece of leasehold land measuring 1.012 hectares in Plentong, Johor, together with a building erected on it, for RM8.8 million.

The group’s 70%-owned subsidiary, Ire-Tax (Johor) Sdn Bhd (ITJSB) is selling the land to The W Clay Industries Sdn Bhd, a prvate company involved in manufacturing and selling bleaching earth and clay products.

In a filing with Bursa Malaysia, Ire-Tax said  the net book value of the property as at Dec 31, 2015 was RM9 million, which resulted in an estimated loss of RM200,000 to the group.

“The property is currently tenanted and the tenancy agreement with the tenant would expire in September 2016, whereby the tenant has no intention of renewing the said tenancy,” it said.

Ire-Tax said the rationale for the disposal is to allow Ire-Tax to unlock and realise the value of the property, which will become vacant upon the expiry of the tenancy.

The disposal consideration of RM8.8 million represents an appreciation in the value of the property, since it was acquired in 2006 for RM1.35 million, it added.

Ire-Tax will utilize the proceeds from the proposed disposal for repayment of bank borrowings.

Ire-Tax’s share price fell by 2.04% to 24 sen today, with 92,600 shares traded.