Asiatic Laboratories has unveiled plans to build a 32-storey tower in Dhaka's Tejgaon commercial area as part of its effort to diversify income beyond medicine manufacturing.
The "high-tech" building, to be named Time Square - Dhaka, will be built on 20 kathas of land, according to a stock exchange filing on Sunday.
In a telephonic conversation with The FE correspondent, company secretary Ishtiaq Ahmed said, "This project will create a new stream of income for the company, independent of our core business in pharmaceuticals."
In the first nine months of FY25, the company reported a 24 per cent year-on-year decline in profit to Tk 209 million. However, it recorded a 35 per cent year-on-year increase in profit to Tk 278.48 million in FY24.
Only one floor of the proposed building will be used as the company's office, while the remaining floors will be rented out or used to operate a five-star hotel.
Mr Ahmed added that the company will not take any loans for the investment. Floors from one to 24 will be rented out, while the upper floors, from the 25th to the 32nd, will be developed into a five-star hotel, which Asiatic plans to operate itself.
"Financing for the hotel will come through issuing shares to the general public," he said.
Construction is scheduled to begin next year, with completion targeted for 2029. Asiatic has signed an agreement with China State Construction Engineering Corporation (CSCEC) to complete the building within three years, in collaboration with Headroom Limited, a Bangladeshi consultancy firm, Mr Ahmed added.
He also laid out the revenue plan for the commercial building.
Each floor will have an area of 8,600 square feet, which will be rented at Tk 200 per square foot. This means Tk 1.72 million per floor per month. Renting out 24 floors will generate Tk 41.28 million monthly, or nearly Tk 495.36 million annually. Additional income will come from hotel operations, Mr Ahmed said.
He further noted that the building will incorporate advanced technologies not yet seen in Bangladesh. Features will include solar power generation through specialised glass windows instead of conventional panels, a central water purification system providing safe drinking water directly from taps, an AI-enabled security system, and a rooftop helipad.
The company has not yet disclosed the total cost of the project, saying calculations are still underway due to its high-tech specifications.
In Sunday's disclosure, the company said its board of directors, in a meeting held on September 27, unanimously approved the project.
Following the announcement, Asiatic Laboratories' share price fell 2.74 per cent to Tk 60.40 on Sunday on the Dhaka Stock Exchange (DSE).
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