Bank Makramah sells Summit Tower for Rs12 billion
Bank Makramah Limited (BML), formerly known as Summit Bank, has finalized the sale of its iconic head office property—Summit Tower in Clifton—to Sumya Builders & Developers for Rs12 billion, marking one of the largest commercial real estate transactions ever disclosed in Pakistan.
According to a regulatory filing with the Pakistan Stock Exchange (PSX) on
Monday, the sale agreement was signed on July 2 and is expected to close within
the current quarter, subject to regulatory and third-party approvals.
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Leasing Back for Interim Operations
The 12-storey mixed-use tower, located at Plot G-2, Block 2, Clifton, is
currently occupied by the bank, which will lease back approximately 60% of the
space on a temporary basis while seeking a smaller, purpose-built headquarters.
BML expects to record a pre-tax gain of nearly Rs5 billion from the transaction,
which will net around Rs3.4 billion after taxes and transaction costs.
Transaction Structure
The proceeds will be disbursed in two equal tranches—one upon deal
completion and the other after fulfillment of post-closing conditions. HBL
Asset Management has been appointed as escrow agent, with Mohsin Tayebaly &
Co. representing the bank and Mandviwalla & Zafar advising the buyer.
Sumya Builders will immediately take over responsibility for all external
maintenance. Internal refurbishment costs will be shared on a pro rata basis
until BML’s planned phased exit, currently targeted for mid-2026.
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Strategic Move to Strengthen Capital
The sale is a key component of BML’s recapitalization strategy, aimed at
restoring regulatory compliance after years of financial strain.
As of March 2022, the bank reported a negative paid-up capital of Rs22.6
billion and a Capital Adequacy Ratio (CAR) of -94.9%, far below the State Bank
of Pakistan’s minimum requirement of 11.5%.
The financial outlook has improved since UAE businessman Nasser Abdulla
Hussain Lootah injected Rs10 billion in fresh equity and acquired a 51%
controlling stake, but the bank still faces a long road to full recovery.
Source: Profit Pakistan