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Telekom Malaysia intends to dispose of two office towers adjacent to its HQ

TM-tower_theedgemarkets_8.jpg

KUALA LUMPUR (Feb 16): Telekom Malaysia Bhd (TM) intends to dispose of two office towers that are adjacent to its headquarters Menara TM on Jalan Pantai Baharu, Kuala Lumpur.

According to a tender notice sighted, TM is inviting offers from interested parties to tender for 20-storey TM Annex 1 Tower and 33-storey TM Annex 2 Tower.

Both properties are leasehold, with TM Annex 1 having 266,140 square feet (sq ft) of gross floor area, and 188,122 sq ft of net lettable area.

TM Annex 2, meanwhile, has 412,875 sq ft of gross floor area, and 280,650 sq ft of net lettable area.

The closing date for the submission of the completed tender documents is on March 29.

Generally, the value of the buildings will depend on whether it will be tenanted, amidst an oversupply of office space in the property market.

The reason for TM to put the two office blocks for sale is not known.

TM has had a tough year in 2018. It share price fell off the cliff, plunging to low of RM2.15 in October last year from the RM6-level. The sharp fall on share price has resulted in the telco stock being bumped out of the list of FBM KLCI members after it lost market capitalisation of RM12 billion.

The telco is due to release its fourth quarter and annual earnings figures this month. It will be watched to gauge the impact of an unexpected cut on wholesale network pricing for high speed broadband service. TM is one that is expected to be affected most.

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