TRX gains trac­tion with over RM4b de­vel­op­ment rights sale

Sales were se­cured from Mu­lia Group, HSBC, Af­fin, WCT and Lendlease for Tun Razak Ex­change

New Straits Times - - Business -


TRX City Sdn Bhd, the mas­ter devel­oper for the Tun Razak Ex­change (TRX), has gar­nered more than RM4 bil­lion in de­vel­op­ment rights sales to five ma­jor com­pa­nies.

The se­cured sales are from In­done­sia’s lead­ing com­mer­cial prop­erty devel­oper Mu­lia Group, HSBC, Af­fin Hold­ings Bhd, WCT Hold­ings Bhd and Aus­tralia’s Lendlease.

TRX chief ex­ec­u­tive of­fi­cer Datuk Az­mar Talib said TRX was di­vided into two parcels of land — North and South — span­ning 23ha and 5.26ha, re­spec­tively.

“We are now fo­cus­ing on the North par­cel, which is made up of quar­ters com­pris­ing fi­nan­cial, life­style and park ar­eas,” he said on the side­lines of a cer­e­mony to ex­change doc­u­ments with Mass Rapid Tran­sit Cor­po­ra­tion Sdn Bhd (MRT Corp) and Stormwater Man­age­ment and Road Tun­nel Sdn Bhd (SMART) here yes­ter­day.

TRX is a 28.3ha de­vel­op­ment, and is tapped to be­come a lead­ing cen­tre for in­ter­na­tional fi­nance and busi­ness.

Az­mar said TRX’s North par­cel had reached 80 per cent com­mer­cial­i­sa­tion rate, with the re­main­ing four avail­able plots com­pris­ing one ho­tel block, two of­fice blocks and a res­i­den­tial block.

“As mas­ter devel­oper, we do not want to un­lock all th­ese plots up­front. Oth­er­wise, we will lose out once the in­fra­struc­ture is com­pleted,” he added.

Az­mar said TRX had achieved economies of scale and crit­i­cal mass on the back of strong in­ter­na­tional brands, span­ning across its project.

“We have gone through the plan­ning stage and passed the com­mer­cial­i­sa­tion stage, which had brought in ma­jor in­vestors.

“We are now in the im­ple­men­ta­tion stage. The last stage is brand-build­ing or de­vel­op­ment stage — to el­e­vate TRX as an in­ter­na­tional brand,” he said.

Az­mar said the com­pany was not short of en­quiries or pro­pos­als from for­eign par­ties in­ter­ested in in­vest­ment.

“How­ever, we do have much more to un­lock at this junc­ture. Apart from strate­gic and eco­nomic rea­sons, we also need the land for con­struc­tion pur­poses.

“Oth­er­wise, ev­ery plot of land will be­gin con­struc­tion at the same time, which is go­ing to be chal­leng­ing for TRX. Cur­rently, the con­struc­tion sched­ule in the TRX de­vel­op­ment area is very tight,” he said.

With an es­ti­mated RM40 bil­lion of gross de­vel­op­ment value (GDV), the scale of TRX’s con­struc­tion is com­plex, the equiv­a­lent to a 3237.5ha de­vel­op­ment be­ing com­pressed into a 28.3ha space.

“We brought in the right brands to help build TRX as a strong in­ter­na­tional brand, but we also need to fill up the space in TRX with the right fi­nan­cial players to sup­port us as a fi­nan­cial hub,” he said.

Az­mar said the govern­ment’s strat­egy was to make TRX a global fi­nan­cial cen­tre.

Hence, in­cen­tives would only be given to en­ti­ties in the fi­nan­cial in­dus­try.

“There are many players in the petroleum and man­u­fac­tur­ing in­dus­tries who want to come into TRX. But we have to fo­cus on build­ing up TRX as a fi­nan­cial cen­tre. We want en­ti­ties rel­e­vant to the fi­nan­cial in­dus­try,” he said.

On the de­vel­op­ment di­vi­sions, TRX has four quar­ters com­pris­ing fi­nan­cial, life­style, park and ur­ban ar­eas, and have three busi­ness mod­els, com­pris­ing the sale of de­vel­op­ment rights and re-de­vel­op­ment ac­cord­ing to the ten­ants’ spec­i­fi­ca­tions, via a jointven­ture, or a mix of th­ese mod­els.

“Our main fo­cus is to de­liver in­fra­struc­ture de­vel­op­ment. The com­mer­cial­i­sa­tion in­cludes build­ing and leas­ing the end prod­uct as well as sales from de­vel­op­ment rights, ac­cord­ing to our de­vel­op­ment spec­i­fi­ca­tion,” he said.

He said de­vel­op­ment progress was about man­ag­ing de­vel­op­ment risk.

“We can do the de­vel­op­ment up­front, but if we can’t com­mer­cialise it, we won’t get in­vest­ments. Do­ing busi­ness is all about man­ag­ing the risk,” he said.

Az­mar said TRX’s de­vel­op­ment was very large and it had to be re­spon­si­bly man­aged to pro­vide sus­tain­able re­sults.

“We have to en­sure that the en­tire de­vel­op­ment project is sus­tain­able eco­nom­i­cally, func­tion­ally and phys­i­cally.

“We do our de­vel­op­ment based on sus­tain­abil­ity. We have a plan that we are guided by.

“As we go along, more in­vestors will come in and pro­vide us with ideas to im­prove our de­vel­op­ment to bet­ter suit the needs of the fi­nan­cial sec­tor,” he said.


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