Bank Makramah Limited (BML) – the institution formerly known as Summit Bank – has signed a sale‑and‑purchase agreement to dispose of its landmark head‑office property, Summit Tower in Clifton, Karachi, to Sumya Builders & Developers for Rs12 billion, according to a statutory filing with the Pakistan Stock Exchange on Monday.
The notice says the deal was executed on 2 July and is expected to be completed within the current quarter, subject to all requisite regulatory and third‑party approvals. The bank, which occupies the upper half of the 12‑storey mixed‑use tower at Plot G‑2, Block 2, Clifton, will lease back approximately 60% of the space for an interim period while it scouts for a smaller, purpose‑built premises. Management anticipates recording a pre‑tax gain of just under Rs5 billion once the transaction closes, a figure that will swing to roughly Rs3.4 billion after tax and transaction costs.
Proceeds will be received in two equal tranches: the first on completion, the second on fulfilment of post‑closing obligations. HBL Asset Management has been appointed escrow agent, while Mohsin Tayebaly & Co. acted as legal adviser to the vendor and Mandviwalla & Zafar to the purchaser. Sumya will assume responsibility for all external maintenance immediately; internal refurbishment costs will be shared pro rata until the bank’s phased exit, targeted for mid‑2026.
Bolstering a thin capital cushion
The sale is the latest leg in an ambitious, multi‑pronged recapitalisation plan designed to haul the troubled lender back into regulatory compliance. At end‑March 2022 the bank’s paid‑up capital was a negative Rs22.6 billion, while its Capital Adequacy Ratio (CAR) languished at ‑94.9% against the State Bank of Pakistan’s 11.5% minimum. The position has improved after UAE businessman Nasser Abdulla Hussain Lootah injected Rs10 billion in fresh equity and took a 51% stake, but BML is still short of the finish line. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
