Business

Affin Bank buys land at TRX

The bank does not need shareholder approval for this purchase.

The bank does not need shareholder approval for this purchase.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — August 10, 2015: Affin Bank has acquired a 0.51-hectare land at the Tun Razak Exchange (TRX) for RM255 million.

Bernama reported that according to group chief executive officer Kamarul Ariffin Mohd. Jamil, the development would have a gross floor area of 823,439 sq. ft. and would house the company’s new 35-storey headquarters after being ‘homeless’ for 40 years.

“We have been looking for a suitable location that meets our requirements and in the right place. We need more space to house everyone under one roof,” he told a media briefing here today on the acquisition from KLIFD Sdn. Bhd.

The land has been independently valued at RM262 million.

Kamarul said the building would cost the bank an additional RM300 million, with the construction expected to be completed by end-2018.

A sum of 10 per cent payment would be paid via deposit and the balance would be paid upon presentation of the registration title.

Kamarul said the full sum would be paid via internal fund, which was equivalent to 0.4 per cent of the bank’s total assets.

On whether there would be any conflict of interest involving Tan Sri Lodin Wok Kamaruddin, who is a non-executive director of the bank and chairman of 1MDB, he said: “He (Lodin) is not participating in the decision-making process. We are buying it for ourself.”

The company also did not need any approval from shareholders before making the acquisition, he said,

He added that Affin has been in talks to buy the land since a year ago and only came to a firm decision recently.

Besides TRX, the bank is eyeing other places, including areas surrounding KLCC and KL Sentral.

Meanwhile, blogger Zakhir Mohamed, better known as Big Dog lauded the move by Affin in his latest posting Hurrah for the ex-servicemen! in reference to the bank being a subsidiary of Armed Forces Fund Board (LTAT).

Big Dog among others  wrote that the investment would add on top of the RM1billion profits that LTAT is making per annum, lately.

He added that the value of LTAT assets would definitely increase too, adding to the RM9.4billion which stands at the moment.

Another blogger, Datuk Ahirudin Attan wrote in his blog Rocky’s Bru that the Affin’s TRX deal should be yet another reason why Tabung Haji cannot sell its TRX land.

Tabung Haji had bought another parcel of TRX land in May, but it caused such a controversy which prompted immediate plan for the land to be sold to a third party.

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News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.