[UPDATED] Telekom Malaysia’s iconic Menara TM building is up for sale

[ UPDATE 9/2/2022 16:30] TM has issued a statement to clarify that they are a tenant of Menara TM. Its corporate offices will be moved to other TM-owned properties.

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It appears that Telekom Malaysia (TM)’s iconic headquarters building Menara TM is up for sale based on a newspaper ad posted by WTW Real Estate. Not to be confused with KL Tower, Menara TM is a 55-storey freehold office tower located at Jalan Pantai Baharu in Kuala Lumpur which can be seen along the Federal Highway.

Completed in 2001, Menara TM is shaped like a sprouting bamboo shoot and it even features a helipad at the top. It has 989,000 sqft of office space and a 92,431 sqft convention centre attached next to it. According to the ad, the sale of the building is by “Expression of Interest” (EOI) and interested parties can submit their offer by 12PM on 18th March 2022.

The tower was constructed at a cost of USD 160 million (about RM670 million today) by Deawoo Construction. It was designed by Hijjas Kasturi Associates, the same firm that designed Menara Maybank, Menara Tabung Haji, and Putrajaya International Convention Centre.

It appears that a Twitter user had contacted one of the agents and was told there’s no starting price at the moment. However, they mentioned that the owner of the building is very keen to sell the property and all prospects are open to proposing a price.

In 2019, TM had put both TM Annexe 1 and Annexe 2 towers up for sale, which are located right next to Menara TM. It was reported that TM could generate as much as RM815 million from the sale of the two towers and it could help TM to generate extra cash to be invested in other areas.

Editor’s Note: The article has been amended to reflect that Menara TM is no longer owned by Telekom Malaysia. TM had sold the building in 2008 and has been occupying the building on a leasing arrangement. Malay Mail reports that the sale was part of the transaction involving the sale and leaseback of Menara TM, Menara Celcom, TM Cyberjaya Complex and Wisma TM in Taman Desa to Menara ABS Berhad for RM1 billion through the issuance of sukuk.

On 28th July 2021, Ratings Agency RAM Holdings Berhad had downgraded Menara ABS’s Tranche A Sukuk. According to their statement, “Pursuant to TM’s decision to not exercise its rights to buy back Menara TM, TM Semarak and TM Taman Desa (Unsold Properties), the Issuer (on behalf of the sukukholders) in early June 2021 appointed real estate adviser, WTW Real Estate Sdn Bhd (CBRE), to plan and drive asset leasing and process to dispose the Unsold Properties in the open market.”

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