AMMB Holdings Bhd announced on June 8 it will acquire Menara AmBank, a 46-storey office tower on Jalan Yap Kwan Seng, Kuala Lumpur, for RM331 million in cash through its wholly owned subsidiary AmBank (M) Bhd in a related-party transaction [1, 2, 3, 4, 5].
Menara AmBank is a freehold building with a net lettable area of approximately 453,419 square feet and an occupancy rate of 77.8% [1, 2]. AmBank is the anchor tenant, occupying about 65.6% of the lettable area [1, 2, 3, 5]. The acquisition involves taking over existing tenancies and licences that cover roughly 12.2% of the building’s net lettable area, leaving some vacant space for future use [1, 2].
AmFIRST REIT, which currently owns Menara AmBank, bought the building in December 2006 at an original cost of RM230.17 million [1, 2]. AMMB is acquiring the property from Maybank Trustees Bhd as trustee for AmFIRST REIT [1, 4]. The RM331 million price reflects a willing buyer-willing seller basis, supported by a market valuation of RM333 million [1, 2].
The deal is related-party due to overlapping ownership structures. AMMB’s chairman emeritus Tan Sri Azman Hashim is a major indirect shareholder of both AMMB and the REIT’s manager. Additionally, AmBank holds a 26.73% stake in AmFIRST REIT, making it a major unitholder [1, 2, 3, 4, 5].
AMMB stated that buying Menara AmBank will allow AmBank to secure its long-term office tenure and potentially reduce cost increases related to its occupancy [1, 3]. The group also considers the building’s strategic location aligned with its office location strategy [4].
The acquisition will be funded from AMMB’s internally generated funds. The company had RM6.82 billion in cash and short-term funds as of end-March 2026. The deal is not expected to materially affect AMMB’s earnings, net assets, or gearing for the financial year ending March 31, 2027 [1, 2, 3, 5].
AMMB targets to complete the acquisition by the fourth quarter of 2026 [1, 2, 3, 4, 5].
