Asiatic Labs joins hands with China firm to build 32-storey ‘Time Square’ at Tejgaon

Infographic: TBS

Asiatic Laboratories Limited, a relatively new entrant to the capital market, has embarked on an ambitious project to build a 32-storey high-tech commercial building in the capital's Tejgaon area, aiming to diversify its business and create a steady stream of rental income alongside its pharmaceuticals operations.

The project, named "Time Square – Dhaka," will rise on a 20-katha plot located in the capital's Tejgaon Commercial Area, a prime location known for its growing concentration of corporate offices and commercial hubs.

The company's board of directors, in a meeting held on Saturday (27 September), approved the project and signed a joint venture agreement with Headroom Limited, acting as the local consultant, and China State Construction Engineering Corporation, one of the world's largest construction firms, which will build the structure, according to a disclosure filed on the Dhaka Stock Exchange (DSE) today (28 September).

Under the agreement, Asiatic Laboratories will provide the land while China State Construction Engineering Corporation will oversee the construction of the building. Ownership of the completed project will be split equally between Asiatic and the Chinese construction giant, with each holding a 50% stake. 

The company's secretary, Ishtiaq Ahmed, confirmed the development but declined to disclose the total investment value when speaking to The Business Standard.

He, however, expressed optimism that the project would bring substantial benefits to the company in the long run.

For Asiatic Laboratories, the Time Square project marks a bold diversification strategy that could help the company strengthen its asset base and secure a steady flow of income independent of the challenges in the pharmaceutical market. Industry insiders note that such ventures can provide long-term stability to listed companies, especially when coupled with prime real estate in Dhaka's growing commercial zones.

Construction of Time Square is expected to begin in early January 2026, with completion targeted between 2029 and 2030. Once operational, the building is anticipated to generate rental income for Asiatic Laboratories, while also providing space for its head office and storage facilities.

Founded in 1970, Asiatic Laboratories started manufacturing pharmaceuticals in 1998 and was listed on the country's bourses in 2024.

In the 2023-24 fiscal year, the company made a profit of Tk27.84 crore and paid a 10% cash dividend to its shareholders.

Its shares, however, closed 2.74% lower at Tk60.40 on the DSE yesterday, although the stock has experienced a sharp rally in recent months. 

From 15 May to 15 September, its share price surged by 114% to Tk63.40. Responding to a query from the DSE in August about the unusual price hike, the company denied having any undisclosed price-sensitive information.

In January this year, Asiatic Laboratories was temporarily downgraded to the Z category on the Dhaka bourse after it had failed to disburse dividends within the stipulated period. It was later reinstated to the A category in February following the distribution of its declared 10% cash dividend.

In the July-March period of FY25, Asiatic Laboratories reported a 24% year-on-year drop in earnings per share to Tk1.71, while its net asset value per share with revaluation stood at Tk53.71. 

The company had earlier raised Tk95 crore through its initial public offering in March 2024. 

Despite a controversial run-up to its market debut – during which the Bangladesh Securities and Exchange Commission (BSEC) unearthed irregularities including false land documents, inaccurate financial statements, and misleading reports of share money deposits – the regulator eventually allowed the IPO to go ahead, albeit with hefty fines imposed on the directors and issue manager. Its managing director, Monir Ahmed, along with the CFO and company secretary, also faced penalties for their roles in the disclosure failures.