LIFESTYLE QUARTER CONSTRUCTION ON TRACK
Lendlease secures 3 anchor tenants, to launch 2 residential towers in first half of 2018
LIDIANA ROSLI
KUALA LUMPUR lidiana@mediaprima.com.my
THE construction of the Tun Razak Exchange (TRX) Lifestyle Quarter by Australian property and infrastructure group Lendlease Group is on track.
Its Malaysian unit, Lend Lease Projects (M) Sdn Bhd, which is undertaking the project in partnership with TRX City Sdn Bhd, has also secured three anchor tenants.
“Following a stringent bidding process in 2013, we signed an agreement in June 2014 to develop a retail mall, hotels and residential towers on a 6.8ha site called the TRX Lifestyle Quarter,” Lend Lease Projects managing director and country head Dinesh K. Nambiar told NST Business.
“We are also planning to launch two of six residential towers in the first half of next year, pending regulatory approvals. The gross development value of the entire project (Lifestyle Quarter) is estimated at RM9 billion, with a gross floor area of more than five million square feet,” he said.
The shopping mall, to be known as The Exchange TRX, will feature 500 retail lots with a net lettable area of 1.35 million sq ft and about 3,000 parking lots.
“The Exchange TRX will be the cornerstone of the Lifestyle Quarter. As of now, we have let out 26 per cent of the retail space to our three anchor tenants.
“We will have Japan’s Seibu Department Stores and also a subsidiary of Hong Kong’s Dairy Farm Group.”
Listed on the London Stock Exchange, Dairy Farm Group has 13 supermarket chains, including Cold Storage, Market Place, Giant and Mercato.
Nambiar said the third anchor tenant was Golden Screen Cinemas Sdn Bhd.
“The first phase of the residential component will have about 900 apartment units.
“Given that the project’s location is in the central business district, these would be high-end residential units.”
It was reported that the 40- to 57-storey residential towers, to be known as TRX Residences, were expected to have studio, one-bedroom and four-bedroom units that will appeal to investors.
Lendlease has been operating in Malaysia for more than 30 years and was involved in projects such as the Petronas Twin Towers, Pinewood Iskandar Malaysia Studios, Setia City Mall and Platinum Park.
It was also involved in international urban regeneration projects such as Barangaroo South and Darling Harbour Live, both in Sydney, and Elephant and Castle as well as the International Quarter in London.
The urban regeneration portfolio is close to Nambiar’s heart.
“We view the TRX project as one of most important urban regeneration projects in Malaysia, given the location and the fact that the TRX is an iconic Malaysian landmark.
“We are keen on more urban regeneration projects in the future and that’s why our focus now is very much the Greater Kuala Lumpur and Klang Valley.”
When asked if there was an oversupply of residential properties in the Klang Valley, Nambiar said: “The thing with cities is, there will always be population growth and a need for residential and community space.
“Kuala Lumpur has seen and will continue to see rapid urbanisation.
“We think that there are opportunities in Kuala Lumpur over the long term and we have been here for a long time and will continue to be here because of that massive potential.”
In Asia, Lendlease is also present in Singapore, China and Japan.
“The combined assets under management for Malaysia and Singapore is RM12.5 billion as at the end of the June 2017 fiscal year. Our collective funds under management is RM16 billion during the same period
“That is a rather a small contribution to the group but we are banking on population growth regionally to grow our business further,” he said, adding that the company was always looking for opportunities in other parts of Asean.