IJM to sell hypermarket building in Sandakan to tenant Econsave for RM47.5m

KUALA LUMPUR (June 2): IJM Corporation Bhd (KL:IJM) is selling a hypermarket building in Sandakan, Sabah, to its tenant, supermarket operator Econsave, for RM47.5 million.

The construction and infrastructure group said in a bourse filing on Friday that its unit, IJM Properties Sdn Bhd, had inked a sale and purchase agreement with Coupang Sdn Bhd — the asset-holding company of Econsave Cash & Carry Sdn Bhd — for the disposal of the single-storey building, which sits on a 2.35-acre (9,518.4 sq m) plot.

IJM said the disposal presents an opportunity to unlock the property’s value and optimise capital allocation, in line with its strategic objectives. The bulk of the proceeds, RM46 million, will be used for working capital, with the balance going to defray the disposal's expenses.

It expects to book a RM34 million gain from the disposal of the property. The property carried an audited net book value of RM12.02 million as at end-March 2025.

The deal is a related party transaction as IJM's independent non-executive director Tan Ting Min is deemed interested because her spouse, Lai Sia Ling, is a major shareholder of Coupang. “Accordingly, Tan has abstained and will continue to abstain from all board deliberations and voting in relation to the proposed disposal,” the group noted.

The property is currently under a tenancy agreement with supermarket chain Bataras Sdn Bhd, which was acquired by Econsave in May 2025. Ecosave is owned by the Lai family. Sia Ling and his siblings Lai Siah Yang, Lai Siek Chuan, and Lai Sak Coon each have a 25% stake in the company.

IJM anticipates completing the disposal by the third quarter.

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