CIMB Group Agrees to $137 Million Sale Leaseback of New HQ Tower in Kuala Lumpur

CIMB Group Web Site - December 3, 2007

CIMB Group today entered into agreements with Pelaburan Hartanah Bumiputera Berhad (PHBB) for the sale and leaseback of Menara Bumiputra-Commerce, the Group's new retail banking headquarters on Jalan Raja Laut, Kuala Lumpur.

Under the sale and purchase agreement, Bumiputra-Commerce Holdings Bhd (BCHB), the listed owner of CIMB Group, will sell the 39-storey building to PHBB for RM460 million or RM730 per square foot. CIMB Bank Berhad will then lease the building from PHBB for an initial period of ten years.

In his speech at the launch, Dato' Mohd Shukri, Executive Director of BCHB, said that the Group decided to build Menara Bumiputra-Commerce three years ago to house its scattered retail banking operations in one location. He also noted that the Group would not be making effective use of its capital if it owned its buildings. "As a banking and financial services group, CIMB Group's strategy is to be asset-light, and employ our capital efficiently towards the core business," he explained.

Dato' Shukri said that the Group was pleased to have PHBB as a partner and was confident that PHBB will be a "buy and hold" investor. He added: "This is also an opportunity for CIMB to form a long-term relationship with PHBB, and to explore areas in which we can create synergies through working with each other."

Menara Bumiputra-Commerce is being constructed by IJM Corporation Bhd and is expected to be completed by the end of 2008. Sphere: Related Content