Karachi – July 8, 2025
In one of Pakistan’s largest-ever commercial real estate transactions, Bank Makramah Limited (formerly Summit Bank) has finalized a deal to sell its iconic headquarters in Karachi’s Clifton area for a staggering Rs12 billion.
The landmark property — known as Summit Tower — is being acquired by Sumya Builders & Developers, according to a statutory notice filed by the bank with the Pakistan Stock Exchange on Monday. The sale agreement was executed on July 2, and the transaction is expected to be completed within the current quarter, subject to regulatory approvals and third-party consents.
Located at Plot G-2, Block 2, Clifton, the 12-storey mixed-use building has long served as the bank’s head office. While ownership is changing hands, the bank isn’t moving out immediately. Under the terms of the agreement, Bank Makramah will lease back approximately 60% of the space for an interim period, giving the management time to identify a new, purpose-built head office. The phased relocation is targeted for mid-2026.
The transaction is expected to generate a pre-tax profit of nearly Rs5 billion, which will translate to around Rs3.4 billion after tax and related costs, according to people familiar with the matter.
Payment for the building will be made in two equal tranches — one upon closing and the other upon completion of agreed post-closing conditions. HBL Asset Management has been appointed as the escrow agent to oversee fund disbursement. Mohsin Tayebaly & Co. advised the bank on legal matters, while Mandviwalla & Zafar acted on behalf of the buyers.
As part of the deal, Sumya Builders will immediately take over responsibility for external maintenance of the building. Internal refurbishment costs, however, will be shared proportionately until the bank completes its exit from the premises.
Strengthening a Fragile Balance Sheet
The sale is part of a broader recapitalisation plan aimed at reviving the bank’s financial health and bringing it back into regulatory compliance. At the end of March 2022, Bank Makramah’s balance sheet was in dire shape, with negative paid-up capital of Rs22.6 billion and a Capital Adequacy Ratio (CAR) of just -94.9%, far below the State Bank of Pakistan’s minimum threshold of 11.5%.
The situation began to improve after UAE-based businessman Nasser Abdulla Hussain Lootah injected Rs10 billion in fresh equity, acquiring a 51% controlling stake in the process. Yet, the bank still has a distance to cover before it clears the regulatory red zone.
With the Rs12 billion injection from this property sale and more restructuring moves reportedly in the pipeline, Bank Makramah’s management hopes to finally stabilize the institution and regain full compliance with SBP guidelines.
