KUALA LUMPUR (June 8): AMMB Holdings Bhd (KL:AMBANK) said it is acquiring its corporate headquarters, Menara AmBank on Jalan Yap Kwan Seng, for RM331 million cash in a related-party transaction, as the group moves to secure long-term office space and reduce rental exposure.
The 46-storey freehold office tower has a net lettable area of 453,419 sq ft and an occupancy rate of 77.8%. AmBank is the anchor tenant, occupying 65.6% of the space.
Menara AmBank is owned by AmFIRST Real Estate Investment Trust (AmFIRST REIT), which acquired the property in December 2006 at an original investment cost of RM230.17 million.
In a filing with Bursa Malaysia on Monday, AMMB said its wholly-owned unit, AmBank (M) Bhd, has entered into an agreement with Maybank Trustees Bhd, acting for AmFIRST REIT.
As part of the acquisition, AmBank will take over existing tenancies and licences, which account for about 12.2% of the building’s net lettable area. The remaining vacant space provides flexibility for future expansion or consolidation.
“Ownership of Menara AmBank allows AmBank 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,” AMMB said.
The transaction is deemed a related-party deal due to overlapping ownership within AmBank and AmFIRST REIT.
AmREIT Managers Sdn Bhd, the manager of AmFIRST REIT, is wholly-owned by AmREIT Holdings Sdn Bhd, which in turn is 70%-owned by AmInvestment Group Bhd, a wholly-owned subsidiary of AMMB. The remaining 30% stake in AmREIT Holdings 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 via 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 a major unitholder.
AMMB said the RM331 million purchase price was arrived at on a willing buyer-willing seller basis, taking into account a market valuation of RM333 million.
The exercise will be funded via internally generated funds and is not expected to materially impact AMMB’s earnings, net assets or gearing for the financial year ending March 31, 2027.
As at end-March, AMMB had cash and short-term funds of RM6.82 billion.
The exercise is targeted to be completed by the fourth quarter of 2026.
Shares of AMMB ended 10 sen or 1.53% lower at RM6.45 on Monday, giving the country’s sixth largest banking group by assets a market capitalisation of RM21.38 billion.
Sourced: The Edge (9 June 2026)