Savills Wins Generous Terms for Leading Malaysian Bank in Lease Renewal and Expansion
Malayan Banking Berhad (“Maybank”) is the leading financial services provider in Malaysia with 2,200 branches and offices in 19 countries serving 22 million customers. Maybank’s New York office was located at 400 Park Avenue and had less than 2 years remaining on a long-term sublease. Maybank was outgrowing their existing space which had an antiquated installation. As a result, they wanted to expand and improve the efficiency of their workplace to accommodate their evolving business needs. Maybank retained Savills to achieve these objectives.
The landlord of 400 Park Avenue was investing significant capital into the building for new elevators, windows and an upgraded lobby, and wanted to increase rents commensurate with other top Park Avenue buildings. As the premier Malaysian bank, Maybank’s preference was to retain a prestigious Park Avenue address. The issue was that Maybank’s current landlord was attempting to achieve an above-market deal as Maybank appeared to be a captive tenant. Savills and Maybank spent the next 6 months surveying every available space, including a number of off-market options, which would suit their needs while maintaining a dialogue with their current landlord. Savills completed taking Maybank through the process of identifying viable alternatives and neared final-term negotiations at three other buildings. At that point, the current landlord took notice and asked what needed to be done to retain Maybank’s tenancy.
Savills was able to negotiate an expansion to the entire 11th floor at a below-market rent and an above-market concession package. The effective cost of the transaction was 17% less than the cost of a lease transaction just completed by another bank on a lower floor in the same building. The generous work allowance secured by Savills resulted in no out-of-pocket expense for Maybank in its construction of a high-end office installation.