PNB LIKELY TO REFURBISH OLD BUILDING
Fund manager will review plans for current headquarters after moving to new 644m tower
PERMODALAN Nasional Bhd (PNB) is likely to refurbish its current headquarters in Jalan Tun Razak, here, once its new 118floor skyscraper Merdeka PNB 118 is completed by early 2021.
President and group chief executive officer Datuk Abdul Rahman Ahmad said PNB would review its future plans for the old building after moving to the 644metre tower.
“As of now, we have no plan yet to dispose of the tower. This is an old building, built more than 40 years ago.
“However, if there is a real estate investment trust (REIT) plan, we have to find new tenants to reap yields because the building was occupied by PNB and our subsidiaries,” said Abdul Rahman at an iftar for orphans from four charitable homes here recently.
He said the value of PNB’s building may not be as high, simply because it is old and may require renovation.
Merdeka PNB 118 is currently being built in the city centre, on the site of the former Merdeka
Park next to Merdeka Stadium and Stadium Negara in Jalan Hang Jebat.
Upon completion, it will be the tallest building in Malaysia, surpassing the Petronas Twin Towers and The Exchange 106 in Tun Razak Exchange.
It could also potentially be the fourth tallest building in the world by 2024.
The iconic tower will comprise a lifestyle retail complex, offices, residences and a hotel.
The initial construction cost of PNB 118 was estimated at RM5 billion.
Abdul Rahman said the cost is within the estimates and expectations as PNB had spent within the allocated budget.
“We have locked in the cost — with a fixed price contract — although there might be some additional material costs. Its price will still be stable,” he said.
He said construction of the tower was progressing smoothly, as it had now reached 61st floor.
“God willing, it can be completed by early 2021,” he added.
Construction of the tower started in 2014, with UEM Group and South Korea’s Samsung C&T as the major contractors.
PNB was the owner of the Merdeka PNB 118 via its unit PNB Merdeka Ventures Sdn Bhd.
NST Property reportedly said PNB 118 was designed by Australian architecture firm, Fender Katsalidis Architects, and the tower’s off-centre spire was inspired by the raised right hand of Tunku Abdul Rahman during the Merdeka proclamation.
Merdeka PNB 118 will have 118 floors topped with a 150m spire.
The podium floors will be occupied by retailers.
PNB and its subsidiaries will take up 42 floors while 14 floors are for amenities. Four floors will become observation decks and another 41 floors are for office rental.
The upper 17 floors of the tower will house Park Hyatt Hotel Kuala Lumpur, operated by Hyatt Hotels Corp.
The five-star hotel will have 232 guest rooms, 28 suites and 30 serviced apartments.
PNB is one of the largest fund management companies in Malaysia with assets under management currently exceeding RM298 billion.
The fund manager’s investments portfolio covers strategic investments in corporates, global equities, private investments and real estate.