Shangri-La Secures Higher Rental For UBN Tower Under New Rental Agreement
Shangri-La Hotels (Malaysia) Bhd has secured two renewed tenancy agreements for office space at UBN Tower, by locking in higher rental income for the next three years.
The group said its wholly-owned subsidiary, UBN Tower Sdn Bhd, has entered into new agreements with Kuok Brothers Sdn Bhd and PPB Group Bhd for a three-year term beginning April 1, 2026.
Both tenants will occupy office spaces of approximately 13,500 sq ft each, with monthly rentals of about RM86,900 and RM87,100 respectively.
The new rental rate of RM6.40 per sq ft represents a 3% increase from the previous rate of RM6.20 per sq ft under the existing tenancy agreements, which are set to expire on March 31, 2026.
The agreements include an option to renew for a further three-year term, subject to mutually agreed rental rates.
Shangri-La Hotels said the rental terms were benchmarked against prevailing market rates for comparable office buildings within Kuala Lumpur’s Golden Triangle, as well as existing tenant rates within UBN Tower.
The property, located along Jalan P. Ramlee, has a total lettable space of 329,800 sq ft. As at end-February 2026, occupancy stood at about 52%, with nearly half of the space still available for lease.
The group noted that securing the renewed tenancies with related parties will help support occupancy levels while ensuring a steady and predictable stream of rental income.
The transactions are classified as related party transactions under Bursa Malaysia’s listing requirements.
