CIMB Bank is set to acquire 16 of its leased properties from Malaysia’s Employees Provident Fund (EPF) in a RM209.81 million deal, marking a strategic shift from leasing to ownership. The transaction, finalized through sale and purchase agreements signed this week, covers properties across multiple states, including Kuala Lumpur, Selangor, and Johor, among others. This move comes as the bank’s 15-year leaseback agreement with EPF nears its June 2024 expiration.
The purchase price was determined through an independent valuation, with the properties’ combined net book value recorded at RM91.84 million as of December 2023. CIMB Bank will fund the acquisition using internal resources, pending regulatory approvals expected within six to nine months. The deal also includes a provision for the bank to potentially repurchase eight additional properties if EPF fails to sell them to third parties.
Originally acquired under a 2009 sale-and-leaseback arrangement, these properties will continue to support CIMB Bank’s operations. The bank expects the transaction to positively impact its financial performance in 2025. EPF, which holds a 17.78% stake in CIMB Group, remains a key stakeholder in the deal.
CIMB Group’s board and audit committee have endorsed the transaction, confirming its fairness and alignment with commercial interests. Following the announcement, the bank’s shares saw a slight uptick, closing at RM7.15, though the stock has declined over 12% year-to-date. The acquisitions are projected to conclude between late 2025 and early 2026, solidifying CIMB’s long-term operational footprint.