KUALA LUMPUR (July 16): Media Prima Bhd confirmed yesterday that it will vacate its premises in Bangsar, explaining that it is part of a plan to consolidate its operations into three locations from four at present.
Responding to a report by theedgemarkets.com titled "Media Prima to end leaseback deal with PNB, vacate Bangsar property — sources", the media group said it is currently operating from four locations with a combined office and studio space of over one million square feet, which it described as "above required space".
"As such, Media Prima does have plans to consolidate its operations into three locations namely Sri Pentas, BB2 and Glenmarie Studios based on workflow and efficient space requirement," it said.
The loss-making media group said it has undertaken several initiatives pertaining to revising revenue models and corresponding cost management involving operational changes to address cost inefficiencies arising from work duplication.
"Arising from improved workflow efficiency, it has been determined that Media Prima does not require the existing space capacity," the group said.
Media Prima said it in November 2018 entered into sale and leaseback agreements for BB1 and BB2 with PNB Development Sdn Bhd, the property development arm of state-controlled Permodalan Nasional Bhd (PNB).
The report by theedgemarkets.com noted that it remained to be seen whether Media Prima's exit from the BB1 deal had been mutually agreed to by both the media group and PNB.
Responding to this, Media Prima yesterday said: "Any move into consolidating Media Prima's operations and vacating BB1 will have to be negotiated and mutually agreed by both parties based on the terms and conditions of the said sale and leaseback agreements."