Group President and CEO of Maybank Dato’ Khairussaleh Ramli (left) and PNB President and Group Chief Executive Ahmad Zulqarnain Onn at the signing ceremony
KUALA LUMPUR: Malayan Banking Bhd
(Maybank) will be moving its corporate head office from Menara Maybank in Jalan Tun Perak, KL, and relocating it to Menara Merdeka 118 as its anchor tenant in the first quarter of 2025.
The group announced on Monday it had entered into a lease agreement with Menara Merdeka 118 owner Permodalan Nasional Bhd for an initial term of three years and renewal for a further six terms of three years each.
Group president and CEO Datuk Khairussaleh Ramli said there were key considerations that included workspace requirements to support the new normal and fulfil the bank's sustainability ambitions.
“As we progressively embrace hybrid work arrangements and virtual office setups, we consciously want to occupy optimal workspaces in buildings that are supported by modern technology infrastructure and environmentally progressive, in line with new global standards of sustainability in buildings.
"These considerations are critical to our leadership ambitions in the area of digitalisation and sustainability and fits into our desire to promote good practices in every aspect of our operations,” he said in a statement.
He added that all existing offices within Menara Maybank will relocate to the new building on a staggered basis starting from the first quarter of 2025.
The KL Main Branch in Menara Maybank, however, will remain and there will be no impact to customers who have accounts in this branch.
According to Khairusalleh, the group had considered the cost-benefit of upgrading the 35-year-old Menara Maybank to meet its requirements, but realised it would incur significant investments, maintenance costs and the need to temporarily relocate its offices and employees to various locations.
"Since Maybank is not in the business of property development, the bank saw it prudent to pursue the tenancy option while evaluating the best options for its current head office, Menara Maybank, which it owns and will become largely vacant with the move to Menara Merdeka 118.
"As a result, both parties have entered into a lease agreement for a period of 10 years on a triple net basis for Menara Maybank, concurrently with the tenancy agreement for Menara Merdeka 118," he added.
Under the triple net basis agreement, PNB will be the master lessor of Menara Maybank and bear all expenses related to the building including maintenance, insurance and taxes.
This lease agreement allows Maybank to realise rental income while deferring the disposal of Menara Maybank to a later date when the real estate market recovers further, allowing the bank to maximise the value of this building, it said.
Selected Maybank subsidiaries currently based in Dataran Maybank will also be relocated to Menara Merdeka 118 including Maybank Islamic, Maybank Investment Bank and Maybank Asset Management.
Maybank, which will be offered naming and signage rights over the building, will occupy 33 floors and is expected to house some 5,900 employees in this new building, which will be accessible by a dedicated entrance for the convenience of employees, customers and visitors.
Maybank’s total occupancy of 650,000 sq ft at Menara Merdeka 118 will be less than its current net lettable area of 1.09 million sq ft at Menara Maybank, in line with the bank’s strategy to use workspace optimally and smartly while incorporating social distancing measures among other SOPs, given its adoption of new age work practices of remote working.
“The leasing of Menara Maybank is a win-win solution for both parties. Maybank is able to transition from an owner-occupied property and relocate to Merdeka 118 while PNB will be asset managing Menara Maybank as part of its domestic core property portfolio, currently totaling 40 assets in Malaysia and 13 assets internationally,” said PNB president and group chief executive Ahmad Zulqarnain Onn.
Maybank will pay an initial monthly gross rent of RM10.60 per square foot (psf) for the first six years, with subsequent adjustments for inflationary costs.
This translates to an effective rental rate of RM8.92 psf, which is lower than the gross rent and within the fair market rates of RM8.48 psf and RM8.93 psf as assessed by the independent valuers.
