CIMB to sell 65 properties to EPF for RM302m

Posted on | December 31, 2009

By BUSINESS TIMES


The group is expected to make a gain of RM171 million from the sale of properties that house its banking operations.


CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4 million in a related-party sale and leaseback deal.

The group, in an announcement yesterday, said the sale will raise cash for CIMB Bank’s working capital, reduce its risk-weighted assets by the book value of the properties and reduce its property risks.

The group is expected to make a gain of RM171 million from the sale.

The properties are currently used to house CIMB Group’s banking business operations such as branches and offices.
The sale and leaseback deal will be not be its first.

It sold and leased back its current head office, Bangunan CIMB, and Menara Bumiputra-Commerce.

In late 2007, CIMB group managing director and chief executive officer Datuk Seri Nazir Razak said it was mulling over a third sale and leaseback exercise on some buildings as part of its plan to manage capital more efficiently.

The EPF is a major shareholder in CIMB Group, while Nazir is a member of the pension fund’s investment panel. He abstained from voting on the deal.

- Malaysia Property News dot net

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