Maybank will move its headquarters to Merdeka 118 in 2025, The Edge report confirms
KUALA LUMPUR (September 12): Malayan Banking Bhd (Maybank) has announced that it will move its headquarters to Menara Merdeka 118, the second tallest building in the world owned by the bank’s largest shareholder, Permodalan Nasional Bhd (PNB).
Maybank entered into a 21-year lease agreement with PNB, comprising an initial term of three years and a renewal for six further terms of three years.
The country’s largest bank by asset size will occupy 33 floors at Menara Merdeka 118, and has been offered naming and signage rights to the building, confirming a report by The Edge Malaysia weekly on August 15.
Maybank, which is 39.85% owned by PNB, said the gross monthly rent is RM10.60 per square foot, subject to variation after the first two terms or six years, in accordance with the terms of the contract rent.
With respect to the existing Menara Maybank, the group has entered into a 10-year lease agreement with PNB to lease the property to PNB on a triple net basis, which means that all Menara Maybank expenses, including maintenance , insurance and all taxes will be borne by PNB.
Maybank is to receive a guaranteed minimum rent which equates to approximately RM12.1 million per annum over the 10 year period. PNB may lease Menara Maybank to sub-tenants.
“If Menara Maybank is sold to a buyer secured by PNB during the term of the lease or for a period up to 24 months after the expiration of the term of the lease, at a price agreed by Maybank, the proceeds net will be shared between Maybank and PNB, in line with market practice,” Maybank said in a filing from Bursa Malaysia.
“For the avoidance of doubt, Maybank itself may also find a buyer for Menara Maybank,” he added.
In a statement released Monday, September 12, Maybank Group Chairman and Chief Executive Datuk Khairussaleh Ramli said the decision takes into consideration the cost and benefits of upgrading Menara Maybank to address, among other things, operational and efficiency benefits, and the latest sustainability standards.
“It would entail significant investment, not to mention maintenance costs and the need to temporarily move our offices and employees to various locations in the Klang Valley. Additionally, there would be various operational risks and business interruptions for our customers,” he said.
Since Maybank is not in the real estate development business, he said the bank felt it prudent to pursue the lease option while evaluating the best options for its current head office, Menara Maybank, which it owns. and which will become largely vacant with the move to Menara. Merdeka 118.
All existing Menara Maybank offices will be relocated to the new building on a phased basis from Q1 2025. KL’s main branch at Menara Maybank will however remain and there will be no impact on customers who have accounts in this branch. .
Some Maybank subsidiaries currently based at Dataran Maybank, including Maybank Islamic, Maybank Investment Bank and Maybank Asset Management, are also moving to Menara Merdeka 118.
Maybank’s total occupancy of 650,000 square feet at Menara Merdeka 118 will be less than its current net leasable area of 1.09 million square feet at Menara Maybank, in line with the bank’s strategy to utilize office space optimally and intelligently while incorporating social distancing measures among other standard operating procedures, given its embrace of new age working practices of remote working, the bank said in the statement.
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