PETALING JAYA: AMMB Holdings Bhd
(AmBank) plans to purchase Menara AmBank, which is located in Kuala Lumpur, for RM331mil in cash.
In a Bursa Malaysia filing, AmBank said its wholly-owned subsidiary AmBank (M) Bhd entered into a sale and purchase agreement with Maybank Trustees Bhd, acting as trustee for the AmFirst Real Estate Investment Trust (AmFirst-REIT) to acquire the 46-storey office building.
The acquisition will include all tenancies, licences, operational assets and essential contracts for its operation and maintenance. Menara AmBank was acquired by AmFirst-REIT back in December 2006 for an original investment of RM230.17mil.
It was also listed on the Main Market of Bursa Malaysia in the same month upon acquisition.
According to the group, owning the office building will allow them to secure its long-term office tenure, and also potentially mitigate increases in costs and expenses incurred in connection with its occupation of Menara AmBank.
It said the remaining vacant space in the building will provide them with opportunities to expand space and consolidate according to the needs of the bank.
As part of the transaction, AmBank has agreed to pay a 7% deposit amounting to RM23.17mil and a real property gains ax retention sum of RM9.93mil.
The remaining balance will be settled upon completion of the acquisition.
The proposed acquisition is expected to be completed in the fourth quarter of this year.
