City Bank buys Gulshan land at above-market price for new headquarters

City Bank is set to construct its own 28-storey headquarters on a 40-katha plot in Gulshan, Dhaka, after deciding to purchase an additional 20 kathas of adjacent land at a cost reportedly higher than prevailing market rates.

The bank already owns 20 kathas on Gulshan Avenue and has now opted to buy a further 20 kathas next to the existing plot to develop a purpose-built corporate headquarters. The newly approved land acquisition will cost Tk345 crore, including the land price and ancillary expenses. However, the decision has sparked discussion in the market, with claims that the bank is paying well above market value.

According to sources involved in land transactions, the price per katha for the newly acquired land is estimated at around Tk17–18 crore, whereas comparable plots in the area are valued at approximately Tk10 crore per katha. Industry insiders believe that land purchases at such high prices could have a negative impact on surrounding property valuations. Questions have also been raised over the rationale behind City Bank’s decision to acquire the land at this price.

Combining the previously owned 20 kathas with the newly purchased 20 kathas, City Bank plans to develop a 28-storey building on the full 40-katha site. The projected cost of constructing the building is Tk855 crore. As a result, the total estimated expenditure for land acquisition and construction stands at about Tk1,200 crore.

Sources said the bank has already obtained the necessary approvals from the Capital Development Authority (RAJUK) and Bangladesh Bank. The decision to build the headquarters and acquire the additional land was formally approved at City Bank’s board meeting held last Wednesday.

Founded in 1983 by 12 leading businesspeople, City Bank was listed on the stock market in 1986. The bank began operating its head office from its first own building in 2009, an eight-storey structure built on a 20-katha plot on Gulshan Avenue near Gulshan-2. As the premises could no longer accommodate the bank’s growing workforce, the old building was demolished to make way for a high-rise headquarters.

As a listed company, City Bank disclosed the decision as price-sensitive information to investors on Thursday. In its disclosure, the bank reiterated that the purchase of an additional 20 kathas would cost Tk345 crore, while the construction of a high-rise building on the combined 40 kathas would require Tk855 crore.

Bangladesh Bank granted approval for the land purchase and building construction on 6 January, after which the board gave its final approval.

Bank officials said RAJUK has approved the construction of a 28-storey building, with five floors designated for parking and the remaining 23 floors housing the bank’s head office operations. With the increased land area, there is now scope to further expand the building’s scale and design.

City Bank Managing Director and CEO Masrur Arefin said the bank aims to set an architectural benchmark in the country’s banking sector. “Bank buildings and offices around the world are designed to be aesthetically pleasing. We want to create a similar example in Bangladesh,” he said, expressing gratitude to Bangladesh Bank for approving the plan.

At present, City Bank’s head office operates from a rented building in Gulshan. According to bank data, City Bank has more than 7,100 employees, with 134 branches and 70 sub-branches across the country.