KUALA LUMPUR: 1Malaysia Development Bhd Real Estate (1MDB RE) has inked a deal with Affin Bank Bhd today to acquire a plot of land measuring 823,439 sq ft in the Tun Razak Exchange (TRX) to develop its new headquarters (HQ) for RM255 million.
The plot, earmarked for a 35-storey Prime Grade A office block, will bring the Affin Group’s financial services entities to co-locate under one roof and cater for the Group’s future expansion plans.
Affin Bank’s new head office would be part of TRX’s financial quarter, essentially the Central Business District of TRX that occupies the most visible corner of the site, fronting both Jalan Tun Razak and Jalan Sultan Ismail.
“We are pleased with the progress we are making in our negotiations with local and international parties, and we are happy to have Affin Bank with us as we continue to realise our aspirations to create a world-class financial district," said 1MDB RE CEO Datuk Azmar Talib in a statement.
The Sale and Purchase agreement was signed following extensive negotiations that began in 2012, and it covers the development rights to build a commercial tower for a consideration of RM255 million.
The development will have a Gross Floor Area (GFA) of 823,439 sq ft, with the price per sq ft GFA of approximately RM310.
Affin Bank’s new head office has an attractive plot ratio of 15.2, while the entire TRX district – which will boast an urban central park and amenities such as on-site water treatment system and district cooling plant – has a plot ratio of 6.8.
At a separate press conference, meanwhile, Affin Bank managing director and chief executive officer (CEO) Kamarul Ariffin Mohd Jamil said: “We have been sourcing for a suitable location that meets our requirement, with the right price. There was a need as the bank, together with other entities within Affin Group, has been growing and we need more space for everyone under one roof.”
He added that the land has been independently valued at RM261 million.
Kamarul Ariffin said Affin will pay 10 per cent deposit for the acquisition and the remaining 90 per cent upon presentation of the registration title.