KUALA LUMPUR (June 2): IJM Corporation Bhd has agreed to dispose of a hypermarket property in Sandakan, Sabah, to supermarket operator Econsave for RM47.5 million as part of its strategy to unlock asset value and enhance capital efficiency.
The sale will be undertaken by IJM's wholly owned subsidiary, IJM Properties Sdn Bhd, which has entered into a sale and purchase agreement with Coupang Sdn Bhd.
The asset comprises a single-storey hypermarket building situated on a 2.35-acre parcel of land in Sandakan, Sabah.
According to IJM, approximately RM46 million of the proceeds will be allocated for working capital purposes, while the remaining amount will be used to cover expenses related to the transaction.
The group expects to record a gain of approximately RM34 million from the disposal. The property's audited net book value stood at RM12.02 million as at March 31, 2025.
The transaction is classified as a related-party transaction due to the involvement of IJM independent non-executive director Tan Ting Min. Her spouse, Lai Sia Ling, is a major shareholder of Coupang. As a result, Tan has abstained and will continue to abstain from all board discussions and voting relating to the disposal.
The property is currently leased to supermarket operator Bataras Sdn Bhd, which was acquired by Econsave Cash & Carry Sdn Bhd in May 2025. Econsave is owned by members of the Lai family, with Lai Sia Ling and siblings Lai Siah Yang, Lai Siek Chuan and Lai Sak Coon each holding a 25% stake.
The disposal is expected to be completed by the third quarter of 2026.
What I Learned
The transaction demonstrates IJM's ongoing effort to monetise mature investment assets and redeploy capital into its core operations. By selling a fully leased retail property, the group is able to realise a significant gain of RM34 million while strengthening its working capital position.
The acquisition also reflects Econsave's continued expansion strategy following its purchase of Bataras in 2025. By acquiring the property it already operates through its subsidiary, Econsave gains greater control over a strategic retail location in Sabah and eliminates future tenancy uncertainties.
From a corporate governance perspective, the disclosure highlights the importance of transparency in related-party transactions, with the interested director abstaining from all deliberations and voting to ensure compliance with governance requirements.
Malaysia