TRX shaping up well with better investor confidence
KUALA LUMPUR: Tun Razak Exchange ( TRX), an iconic 28 hectare mixed development in the heart of Kuala Lumpur, is shaping up well amid better investor confidence with the first phase on track for completion as scheduled.
No doubt the ambitious project experienced some set back, amid issues related to 1Malaysia Development Bhd ( 1MDB), it had undergone complete restructuring which resulted in TRX coming under the full control of the Ministry of Finance.
TRX City Sdn Bhd, formerly known as 1MDB Real Estate Sdn Bhd, is the master developer of the project. It is now an entity on its own. TRX, with a development period of 15 years, will be completed in phases with phase one slated for completion in 2018/2019.
“Last year a lot of promotional efforts were undertaken and substantial discussions were held with potential investors and was also the year when developments were ramped-up,” said a source close to the development.
Investors, both current and potential, are now more confident about the development and 2017 would see more positive announcement, she said.
“TRX is currently finalising talks involving two major international financial institutions,” said the source, who declined to disclose details.
TRX’s estimated gross development value is RM40 billion that will encompass investment grade A office space underpinned by world- class residential, hospitality, retail, leisure and cultural offerings.
When contacted by Bernama, TRX City Sdn Bhd chief executive officer Datuk Azmar Talib confirmed that there were talks with both international and local financial institutions to bring their operations to TRX.
However, he was mum on the numbers and names of the institutions.
“We will make the necessary announcements in due course,”
Last year a lot of promotional efforts were undertaken and substantial discussions were held with potential investors and was also the year when developments were ramped-up. Source
he said.
Azmar added that TRX’s efforts to build Kuala Lumpur’s future included filling the current gap in the market for prime grade A office space.
“Our strong investor and tenant response is a testament to that,” he said, adding that out of the 29 development plots on TRX, about 60 per cent were commercialised.
He said the TRX’s ‘ Lifestyle Quarter’, jointly developed with Australia’s Lendlease, would contain ‘ The Exchange’ – a lifestyle mall with over 500 shops - a luxury hotel and residential towers built around the central urban park.
Meanwhile, the ‘ Signature Tower’, a 92-storey tower anchoring the development, is developed by Mulia Group.
TRX has also seen increased investor confidence following the transfer of its ownership from 1MDB to the Ministry of Finance.
Azmar also confirmed that TRX’s development was on track with the first phase scheduled for completion in 2018/2019.
Among others, he said TRX had set aside RM3 billion to create a world-class sustainable infrastructure for the upcoming financial district.
This included a loop tunnel system, direct link to major thorough fares in the area and a four hectare urban park.
“There are eight packages altogether under our infrastructure programme.
“Package one, the earthworks, has been completed.
“Two contracts – the road infrastructure and the water utilities packages – are currently underway,” Azmar said.
InMay2016, TR X tendered out the next phase of infrastructure work that included the construction of Jalan Tun Razak-TRX Ingress and Egress (underground tunnel), MEX- TRX Ingress ( elevated), SMART-TRX Ingress and Egress (underground tunnel), as well as, related works.
“We expect to award the package in the first quarter of 2017,” he added. — Bernama