Maybank has announced that it will be moving its corporate head office from its current location, Menara Maybank in Jalan Tun Perak, to Menara Merdeka 118 during the first quarter of 2025. The move, which will be done in stages, is expected to further enhance the bank’s brand visibility, especially given Menara Merdeka 118’s status as the world’s second tallest building.
This decision will see Maybank entering into a 21-year tenancy agreement with its largest shareholder, Permodalan Nasional Bhd (PNB), who owns Menara Merdeka 118. The bank will occupy 33 floors (650,000 square feet) in Menara Merdeka 118 to house all existing offices currently within Menara Maybank. Maybank’s KL Main Branch, meanwhile, is set to continue operating in Menara Maybank, with no impact to customers who have accounts there.
Maybank also noted in a statement that as the anchor tenant of Menara Merdeka 118, it has also been offered naming and signage rights over the building. Cost-wise, Maybank will be charged an initial monthly gross rent of RM10.60 per square foot for the first six years, with subsequent adjustments for inflationary costs.
(Image: The Malaysian Reserve/Muhd Amin Naharul)
In return, Maybank will lease Menara Maybank – which has a net lettable area of 1.09 million square feet – to PNB for a 10-year period on a triple net basis starting from the fourth quarter of 2025. This means that PNB (as the tenant) will bear all expenses of Menara Maybank, including maintenance, insurance, and taxes. PNB will also be allowed to rent out Menara Maybank to sub-tenants. Maybank, meanwhile, will receive a minimum guaranteed rental of approximately RM12.1 million per annum over the 10-year lease period.
Based on this arrangement, it is estimated that Maybank’s effective annual rental cost will stand at an estimated RM69.58 million.
Maybank group president and chief executive officer, Datuk Khairussaleh Ramli explained that the decision to relocate was made after careful consideration of its future operational requirements, chief of which is the bank’s sustainability aspirations. “For us to upgrade this building (Menara Maybank) to make it a platinum building and consistent with our aspiration [towards] sustainability, it is going to cost a lot of money. We have to refurbish this, move out, and then come [back] in, that is one perspective,” he said.
Menara Merdeka 118, meanwhile, has already been awarded triple platinum green ratings in Leadership in Energy and Environmental Design (LEED), Green Building Index (GBI), and Green Real Estate (GreenRE). It also has a Multimedia Super Corridor (MSC) status.
Datuk Khairussaleh also acknowledged that the new head office in Menara Merdeka 118 will have a smaller space than it currently does in Menara Maybank, but said that this is in line with the group’s strategy to use workspace optimally. This is especially as it is also adopting remote working practices. “We will continue to have people working from home, as a new normal. In fact, now we only have about 80% of people back in the office,” he said.
Finally, Datuk Khairussaleh stressed that the rental cost incurred by Maybank via this arrangement is a small cost, especially given the group’s annual net profit of over RM8 billion and the benefits that can be reaped. “We think that it’s about the goodwill of having such a high-profile building. It is not just about dollars and cents, it is about profiling Maybank. We are the biggest bank in Malaysia, and No 4 in ASEAN,” he said, adding that the goodwill gained from this move is immeasurable.