KARACHI: Summit Bank (Bank Makramah Limited (BML) has inked a deal to dispose of its landmark head‑office property, Summit Tower in Clifton, Karachi, to Sumya Builders and Developers for Rs12 billion, according to a statutory filing with the Pakistan Stock Exchange (PSX) 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.
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.
In December shareholders voted overwhelmingly in favor of a Scheme of Arrangement that will lift net assets by Rs29.39 billion through a combination of share‑premium transfers, Tier‑II capital instruments and real‑estate disposals. The Summit Tower off‑load represents the first major asset sale under that programme.
Apart from equity injections and asset disposals, the bank has lined up a Rs6 billion Additional‑Tier‑I Sukuk and has secured SBP approval to reclassify Rs3.5 billion of subordinated debt as hybrid capital. The combined measures should push the CAR above 12% by June 2026, paving the way for full Islamic conversion and an eventual return to profitability.
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