KUALA LUMPUR: The divestment of CITI Malaysia's share in Menara Citibank along Jalan Ampang, Kuala Lumpur, has gained momentum with Knight Frank and Savills being appointed as joint advisors for the sale of their client's stake.
CITI Malaysia, the local branch of US banking giant Citigroup, has actively sought a buyer for its ownership in Menara Citibank as part of its global real estate portfolio reassessment.
In November 2022, CITI Malaysia concluded the sale of its consumer banking business to United Overseas Bank Ltd (UOB), encompassing unsecured and secured lending portfolios, wealth management, and retail deposits in Malaysia.
Constructed in 1995 by the Lion Group, Menara Citibank initially sold half of its stake to Citi in 2000 for RM75.25 million, leading to the relocation of Citi's headquarters to the premises.
The remaining 50 per cent shares were held by Lion Group's Amsteel Corp Bhd (20 per cent) and CapitaLand Ltd (30 per cent).
Subsequently, in August 2009, Hap Seng acquired both Amsteel and CapitaLand's shares in the building for RM243.52 million.
As a 28-year-old office building, jointly owned by CITI Malaysia and Hap Seng Consolidated Bhd,
Malaysian Rating Corp Bhd stated in a June 2022 report that an independent appraisal dated December 10, 2021 valued the asset at RM700 million. There was no mention of the independent valuer.
This Grade A, 50-storey, freehold office edifice stands as a prominent landmark in the city, benefiting from excellent public transport links with Ampang Park LRT and Ampang Park MRT stations in close proximity.
James Buckley, Knight Frank Malaysia's head of capital markets, underscored Kuala Lumpur's allure relative to other Asian office markets, citing higher entry yields, stable rents, and less volatile capital values.
He highlighted Menara Citibank as an appealing investment prospect for those seeking Grade A offices, given its diverse tenant mix and partnership with one of Malaysia's prominent conglomerates.
Buckley noted Menara Citibank's meticulous maintenance and comprehensive upgrade of lifts and common areas completed in 2022.
The building offers top-notch office space suitable for major domestic and foreign occupiers, featuring spacious floorplates, lofty ceilings, a green rating (GBI), power redundancies, and exceptional signage opportunities.
Nabeel Hussain, head of capital markets at Savills Malaysia, highlighted CITI Malaysia's significant presence in the building, occupying over one-third of the total net lettable area.
Other notable tenants include United Overseas Bank (UOB), Hibiscus Oil & Gas, Malayan Flour Mills, Total Systems Services, Samsung C&T, and the Japan International Cooperation Agency.
Hussain underscored Menara Citibank's enduring popularity among tenants, evidenced by its current occupancy levels and its iconic status in downtown Kuala Lumpur's skyline.
