CIMB Thai Bank PCL, a 93.15% owned subsidiary of CIMB Group has entered into a sale and purchase agreement to sell its Sathorn, Bangkok for one billion baht (RM101 million). The sale is expected to be completed by December 2009.

According to Subhak Siwaraksa, president and chief executive officer of CIMB Thai, the sale is part of a rationalisation exercise to improve efficiency and reduce costs. He added that the bank is currently operating with excess space with the bank’s operations in Bangkok spread between its premises in Sathorn and Langsuan.

By early next year, CIMB Thai Bangkok will be operating from its Langsuan building.

The Sathorn office block consists of a 26-storey tower block and a three storey building with a land area of 2,706 sq m.

“As a banking and financial services provider, CIMB Thai should use its balance sheet to generate more lending and income, instead of weighing it down with property assets,” says Subhak.