CIMB Bank to Acquire 16 Leased Properties from EPF for RM209.8 Million

Marcus Liew
May 22
2 min read

CIMB Bank Bhd, a wholly owned unit of CIMB Group Holdings Bhd, is set to purchase 16 properties from the Employees Provident Fund (EPF) for RM209.81 million in cash, as part of a strategic asset repurchase move.

These properties are part of a 2009 sale and leaseback deal between CIMB Bank and EPF, covering 24 properties, with the lease set to expire on June 30, 2025.

Key Transaction Highlights

Number of properties acquired: 16
Locations: Across 10 states including Kuala Lumpur, Selangor, Johor, Perak, Sabah, Sarawak, and Labuan
Purchase price: RM209.81 million (based on independent valuation)
Net book value (as of Dec 31, 2024): RM91.84 million
Original investment (as of Dec 31, 2009): RM157.33 million
Funding: Internally generated funds
Estimated completion: Q4 2025 – Q1 2026 (pending state and federal approvals)

Strategic Rationale

The acquisition allows CIMB Bank to regain long-term control over critical operational properties and eliminate future lease payments, which is expected to positively impact earnings in 2025.

Additionally, CIMB has the option to repurchase the remaining 8 properties from EPF should they remain unsold, as stipulated in the original lease terms.

Shareholder Considerations

EPF currently holds a 17.78% stake in CIMB Group, making this a related party transaction. However, CIMB’s audit committee and board of directors have affirmed that the deal is fair, reasonable, and aligned with minority shareholder interests.

On Friday, CIMB Group’s shares closed at RM7.15, up 0.4%, giving it a market cap of RM76.8 billion. Despite this uptick, the stock remains down 12.05% year-to-date.

Bottom Line

This property acquisition is a strategic move by CIMB Bank to enhance its asset base, reduce lease dependency, and generate long-term cost efficiencies—while strengthening control over its operational footprint across Malaysia.