By NST Property/Sharen Kaur - September 5, 2023
sharen@nst.com.my
KUALA LUMPUR: Appetite towards Menara Maybank has increased since Malayan Banking Bhd (Maybank) announced its relocation to Merdeka 118, the world's second-tallest building, owned by its largest shareholder, Permodalan Nasional Bhd (PNB).
Market insiders said that Menara Maybank, a 55-storey skyscraper in Pudu, Kuala Lumpur, is on the radar of investors.
"Menara Maybank is attracting attention due to its prime location. Companies are hunting for older buildings in Kuala Lumpur's city core to relocate their headquarters since the leasing cost is less expensive than relocating into a brand new structure.
"We understand PNB may rent out Menara Maybank to sub-tenants once all Maybank employees relocate to Merdeka 118. However, if it receives a good offer for Menara Maybank, it may sell the building," a person with knowledge on the matter told NST Property.
Menara Maybank began construction in 1984 on Court Hill, on the site of a colonial-era Sessions Court structure, and was completed in 1987.
Before the Petronas Twin Towers were built in 1995, Menara Maybank was the highest structure in Kuala Lumpur and Malaysia, standing at 244 m (801 ft), roughly half the height of the twin towers.
"Menara Maybank can be refurbished into offices to enjoy a new lease of life and attract a different segment of tenants," said KGV International Property Consultants executive director Anthony Chua.
Despite its age, Chua believes the building can attract foreign renters or investors.
Maybank to relocate to Merdeka 118 in 2025
Maybank, the country's largest bank by asset size, had entered into a 21-year tenancy arrangement with PNB, which included a three-year initial term and six three-year renewal agreements for Merdeka 118.
According to the conditions of the tenancy agreement, the monthly gross rent is RM10.60 per square foot, subject to modification after the first two terms or six years.
Maybank will occupy 33 floors of Merdeka 118 and has been granted naming and signage rights to the structure.
All current Menara Maybank offices will be relocated to Merdeka 118 in stages, beginning in the first quarter of 2025.
Also relocating to Merdeka 118 are selected Maybank subsidiaries currently based in Dataran Maybank, including Maybank Islamic, Maybank Investment Bank, and Maybank Asset Management.
The total occupancy of 650,000 sq ft at Merdeka 118 will be less than its current net lettable area of 1.09 million sq ft at Menara Maybank.
Before this, Maybank had relocated some 1,500 employees to Mercu Maybank, located at i-City in Shah Alam, Selangor, to improve its business continuity management and resilience planning.
Mercu Maybank (formerly known as Menara Sumurwang) was unveiled on April 7, 2022, and the employees began moving in gradually.
Meanwhile, Menara Maybank had entered into a 10-year lease deal with PNB to lease the property to PNB on a triple-net basis, which means that PNB will bear all Menara Maybank expenses, including maintenance, insurance, and all taxes.
Maybank will earn a minimum guaranteed rental of RM12.1 million per year for the next ten years.
Maybank group president and chief executive officer Datuk Khairussaleh Ramli said in a statement last September that because the bank is not in the business of property development, the group saw it prudent to pursue the tenancy option while evaluating the best options for Menara Maybank, which it owns and will become largely vacant with the move to Merdeka 118.
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