Affin Bank Bhd has acquired a 0.51-hectare land in the Tun Razak Exchange (TRX) from KLIFD Sdn Bhd for RM255 million, said Group Chief Executive Officer, Kamarul Ariffin Mohd Jamil.

He said the development would have a gross floor area of 823,439 sq ft and it would house the company's new 35-storey headquarters after being 'homeless' for 40 years.

"We have been looking for a suitable location that meets our requirements and in the right place. We need more space to house everyone under one roof," he told a media briefing on the acquisition here today.

The land has been independently valued at RM262 million.

He said the new building would cost the bank an additional RM300 million, with the construction expected to be completed by end-2018.

A sum of 10 percent payment would be via deposit and the balance of the purchase price would be paid upon presentation of the registration title, he said.

Kamarul said full sum would be paid via internal fund, which was equivalent to 0.4 percent of the bank's total assets.

On whether there would be any conflict of interest involving Tan Sri Lodin Wok Kamaruddin, Chairman of 1MDB, he said: "He (Lodin) is not participating in the decision-making process. We are buying it for ourself."

The company also did not need any approval from shareholders before making the acquisition, he said.

He said Affin has been in talks to purchase the land since a year ago and the company only came to solid decision recently.


"Besides TRX, the bank also eyeing other suitables places, including areas surrounding KLCC and KL Sentral," he said.