AmFIRST REIT's RM331,000,000 sale of Menara AmBank to AmBank (M) Bhd has turned unconditional after unitholders approved the related-party transaction on 21 September 2026.
The headline number works out to about RM730 per sq ft of net lettable area: RM331,000,000 divided by the 453,419 sq ft NLA stated in EdgeProp's report. That is not a land price, and it should not be read like one. It is a rough building-value yardstick for a 46-storey freehold office tower with seven levels of elevated car park at No 8, Jalan Yap Kwan Seng, Kuala Lumpur.
Rummah News' view is that the balance sheet is the real story here. EdgeProp reported that the RM331,000,000 consideration is only 0.61% above Menara AmBank's RM329,000,000 appraised market value as at 31 March 2026, while the audited net book value was RM328,750,000. This is not a dramatic premium sale. It is capital being released from a mature office asset.
The proceeds are mostly going back into debt. EdgeProp said RM225,000,000 is earmarked to redeem Menara AmBank and discharge existing charges and a private caveat, with another RM95,030,000 intended for partial repayment of revolving credit facilities with AmBank. On a pro forma basis, the disposal would lower AmFIRST REIT's gearing to 33.94% from 46.60% as at 31 March 2026.
That lower gearing is why the sale matters beyond one Kuala Lumpur tower. Bernama reported that AmREIT Managers chief executive officer Chong Hong Chuon said the REIT would have a healthier balance sheet to pursue diversification, including hospital-related assets. The point is not that every older office tower is suddenly unwanted. The point is that a listed landlord with limited debt headroom has to choose which assets deserve capital and which assets trap it.
Menara AmBank also had an operating reason to be under review. EdgeProp reported that the building was 77.8% occupied as at 31 March 2026 and generated rental income of RM22,220,000 and net property income of RM12,130,000 for the financial year ended on that date. For a REIT trying to lift portfolio occupancy and reposition towards more resilient income streams, that is a heavy asset to carry.
The transaction is related-party in nature because AmBank is a major unitholder of AmFIRST REIT. EdgeProp reported that non-interested unitholders approved the resolution with 58.07 million votes, or 96.14% of votes cast, in favour. The sale is due to complete within three months from the fulfilment or waiver of all conditions precedent, with a possible one-month extension under the sale and purchase agreement.
