This article first appeared in The Edge Malaysia Weekly on October 19, 2026 - October 25, 2026

Commercial office tower Menara Pacific Place in Leboh Ampang, Kuala Lumpur, is said to have been sold, according to sources familiar with the area. The former Menara HSBC South Tower had been the headquarters and branch for HSBC Bank Malaysia since 1979, before its relocation to Menara IQ @ Tun Razak Exchange.

The 20-storey tower, which is just next to Masjid Jamek LRT station and close to Medan Pasar, had an asking price of RM89 million. It sits on a 13,000 sq ft piece of land with a net lettable area of 172,245 sq ft.

“PACT REIT Managers Sdn Bhd acquired the property from HSBC in 2023 for around RM55 million. The new buyer paid a little lower than the asking price of RM89 million,” an industry observer tells The Edge.

The freehold property is said to have been acquired by Alaka Holdings Trust, also referred to as Alaka Holdings Ltd. Its co-founders are private equity firm Creador Sdn Bhd founder and CEO Brahmal Vasudevan and his wife Shanthi Kandiah, lawyer and founder of legal firm SK Chambers. They are also founders of Creador Foundation, Creador’s philanthropic arm.

The acquisition follows several others. The Edge reported in September that Creador Foundation had recently picked up the historic 13-storey RHB Bank building in Jalan Tun H S Lee and Bangunan UOB in Medan Pasar, both in the older part of the city centre where many of KL’s early commercial buildings still stand. These acquisitions form a pattern that is hard to dismiss as opportunistic.

Market observers note that the buyer’s approach differs from that of a typical investor. Rather than assembling a portfolio for yield or short-term capital gains, it appears to be targeting buildings with character and a place in the city’s commercial history, with the stated aim of conserving them.

Both Alaka Holdings Trust and Creador Foundation have been actively involved in restoration initiatives. The foundation has been on a heritage property push since 2024, when it began restoration work around Medan Pasar and Central Market in Kuala Lumpur’s historic district. Its efforts have already delivered several visible wins, with the revival of a shuttered row of shophouses in Medan Pasar, including the Sin Seng Nam corner lot, now home to the popular KLCG Confectionery & Bakery.

“The timing reflects wider conditions in the market. Owners of ageing office stock are under pressure from newer developments with better specifications, connectivity and amenities, and many older buildings have struggled to keep tenants without heavy capital expenditure. For some owners, selling to a buyer with a long holding horizon is more attractive than funding a refurbishment themselves.

“At the same time, buyers are being more selective. Condition, occupancy, tenure, lease profile and the cost of upgrading all weigh on pricing, and an asset that looks cheap on a per-square-foot basis can prove expensive once repair and compliance costs are counted. A buyer motivated by preservation rather than returns can afford to look past some of these factors, which may explain why transactions of this kind can close near asking prices even in a cautious market,” a local agent tells The Edge.

Conservation-led buying is relatively new to the Malaysian commercial property scene, where redevelopment has historically been the default exit for older buildings in prime locations. “As land values in central KL rise, the underlying site is often worth more than the building on it, and demolition and rebuilding can look like the obvious route.

“A buyer prepared to hold and restore buildings changes that calculation. It can keep landmark structures in use and preserve the streetscape that gives older districts their identity, while still putting the buildings back into productive use. Whether that means offices, retail, cultural space or something else will depend on each building’s condition and the planning approvals needed,” a market observer familiar with the area says.

It is believed that Creador or its related entities have acquired 17 out of the 27 buildings in the Medan Pasar area, while the remaining buildings are on a lease basis.

Set to open in November, Creador Foundation’s Muara Arts Gallery, a public art gallery dedicated to modern and contemporary Malaysian and Southeast Asian art, has a total built-up area of about 20,000 sq ft and sits across six Art Deco shophouses from the 1930s. The performing arts theatre, Muara Arts Theatre, is currently under construction with an expected completion by 2029.

According to its website, the private equity firm Creador, which was incorporated in 2011, is known for its investments in brands such as MR DIY (under MR DIY (M) Group Bhd [KL:MRDIY]), Hock Kee Kopitiam and BIG Pharmacy. The fund has about US$3.1 billion (RM12.52 billion) in assets under management.

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