AMMB Holdings Bhd (AmBank Group) plans to acquire Menara AmBank in Kuala Lumpur for RM331 million, a move aimed at securing its long-term office presence while reducing future occupancy costs.
The banking group announced that its wholly owned subsidiary, AmBank (M) Bhd, has entered into a conditional sale and purchase agreement with Maybank Trustees Bhd, acting as trustee for AmFIRST Real Estate Investment Trust (AmFIRST REIT), to acquire the 46-storey office tower together with related assets, rights, tenancies and operational contracts.
Under the agreement, AmBank will pay a total purchase consideration of RM331 million in cash for the property, which serves as the group’s principal office location.
As part of the transaction, AmBank has agreed to pay a 7% deposit amounting to RM23.17 million and a Real Property Gains Tax retention sum of RM9.93 million. The remaining balance will be settled upon completion of the acquisition, subject to the fulfilment of conditions outlined in the agreement.
Menara AmBank, located along Jalan Yap Kwan Seng in Kuala Lumpur’s Golden Triangle commercial district, comprises a 46-storey purpose-built office building and a seven-level elevated car park. The building, which was completed in 1997, has been occupied by AmBank as its anchor tenant, with the bank currently taking up approximately 65.6% of the property’s net lettable area.
AMMB said the acquisition presents an opportunity for the group to own the building that houses its core operations rather than continue incurring rental expenses as a tenant.
The group noted that ownership of the property would help secure long-term office tenure and potentially mitigate future increases in occupancy-related costs.
In addition to the space occupied by AmBank, existing third-party licences and tenancy agreements covering about 12.2% of the building’s net lettable area will remain in force after the acquisition. The remaining vacant space is expected to provide flexibility for future expansion or consolidation plans.
