KUALA LUMPUR (March 30): Shangri-La Hotels (Malaysia) Bhd (KL:SHANG) said its wholly owned unit has renewed related-party tenancy agreements for office space at UBN Tower in Kuala Lumpur at rental rates that are 3% higher, effective April 2026.

In a filing with Bursa Malaysia on Monday, Shangri-La said its subsidiary UBN Tower Sdn Bhd signed the tenancy agreements on March 30 with Kuok Brothers Sdn Bhd and PPB Group Bhd (KL:PPB) for a three-year term commencing April 1, 2026.

The leases cover a combined 27,191 sq ft at a rental rate of RM6.40 psf, up from RM6.20 previously.

The agreements are expected to generate total rental income of RM6.26 million over the tenure, equivalent to 0.69% of Shangri-la’s net assets as at end-December 2024.

UBN Tower has a total lettable area of 329,800 sq ft, with 158,861 sq ft available as at Feb 28, 2026, translating to an occupancy rate of 52%.

Shangri-La said the transactions, classified as related-party deals under Bursa Malaysia’s listing requirements, do not require shareholder approval. Kuok Brothers is a major shareholder of the hotel group with a 23.08% equity interest and also holds a 50.85% stake (direct and indirect) in PPB.

The group noted that the agreements will support occupancy levels at UBN Tower and provide a steady income stream, with an option to renew for a further three years at mutually agreed rates.

The board, excluding an interested director, together with the audit committee, said the transactions are fair, reasonable, conducted on normal commercial terms and not detrimental to minority shareholders.

Shares in Shangri-La Hotels (Malaysia) closed down 3 sen or 1.7% at RM1.69, valuing the group at RM743.6 million. Over the past one year, the stock has fallen 2.9%.