AMMB Holdings Bhd is acquiring its corporate headquarters, Menara AmBank on Jalan Yap Kwan Seng, for RM331 million in cash through a related-party transaction, a move aimed at securing its long-term office requirements and reducing future rental costs.
In a filing with Bursa Malaysia, the banking group said its wholly owned subsidiary, AmBank (M) Bhd, has entered into a sale and purchase agreement with Maybank Trustees Bhd, acting on behalf of AmFIRST Real Estate Investment Trust (AmFIRST REIT), the current owner of the property.
The 46-storey freehold office tower has a net lettable area of 453,419 square feet and an occupancy rate of 77.8%, with AmBank serving as the anchor tenant and occupying 65.6% of the building.
As part of the acquisition, AmBank will assume the existing tenancies and licences covering approximately 12.2% of the building’s net lettable area, while the remaining vacant space will provide opportunities for future expansion or operational consolidation.
The group said owning Menara AmBank will help secure its long-term office tenure while potentially mitigating increases in occupancy-related costs.
The transaction is classified as a related-party deal due to overlapping ownership interests between AMMB and AmFIRST REIT.
AmREIT Managers Sdn Bhd, the manager of AmFIRST REIT, is wholly owned by AmREIT Holdings Sdn Bhd, of which 70% is owned by AmInvestment Group Bhd, a wholly owned subsidiary of AMMB. The remaining 30% stake is held by Amcorp Properties Bhd, a unit of AMMB’s major shareholder, Amcorp Group Bhd.
Tan Sri Azman Hashim, chairman emeritus and honorary adviser of AMMB, is an indirect major shareholder of both AMMB and the REIT manager through his interests in Amcorp Group. He is also a director of Yayasan Azman Hashim, a substantial unitholder of AmFIRST REIT.
In addition, AmBank holds a 26.73% stake in AmFIRST REIT, making it one of the trust’s major unitholders.
AMMB said the RM331 million purchase price was agreed on a willing buyer-willing seller basis after taking into account an independent market valuation of RM333 million.
The acquisition will be funded through internally generated funds and is not expected to have a material impact on the group’s earnings, net assets or gearing for the financial year ending March 31, 2027.
As at end-March, the group had RM6.82 billion in cash and short-term funds.
The transaction is expected to be completed by the fourth quarter of 2026.
Shares of AMMB closed 10 sen lower at RM6.45 on Monday, giving the banking group a market capitalisation of RM21.38 billion.
