Construction of the Tun Razak Exchange (TRX) is proceeding as planned amidst rosier investor confidence, with Phase I set to be completed as targeted by next year at the earliest.
Although the 28ha mixed-use project in Kuala Lumpur has faced issues in the past due the scandal of its former parent firm, 1Malaysia Development Bhd (1MDB), it is now under the purview of the Ministry of Finance after undergoing complete restructuring.
In fact, the mega development’s master developer, formerly known as 1MDB Real Estate Sdn Bhd, is now an independent entity called TRX City Sdn Bhd.
TRX, which has a gross development value (GDV) of around RM40 billion, will be built in phases over 15 years. It will feature Grade A office space, complemented by world-class hotels, residential properties, retail space, entertainment venues and cultural attractions.
“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 person privy to the development.
She noted that existing TRX investors as well as potential ones are now more optimistic about the mammoth project. Also, there are likely to be more positive announcements about it this year.
“TRX is currently finalising talks involving two major international financial institutions,” said the source, who requested anonymity.
When called by Bernama, TRX City Sdn Bhd’s CEO Datuk Azmar Talib confirmed that the company is wooing international and local banks to set-up a presence in the upcoming financial district. However, he declined to reveal the number and names of the companies they are in talks with.
“We will make the necessary announcements in due course,” he noted.
Moreover, Azmar revealed that around 60 percent of the 29 development plots in TRX are for commercial use. In particular, the TRX’s Lifestyle Quarter will comprise a lifestyle mall with more than 500 shops known as The Exchange. Jointly developed with Australia’s Lendlease, the quarter will also come with an upscale hotel and residential towers. As for the 92-storey Signature Tower, it is under construction by Mulia Group.
Furthermore, the master developer has allocated RM3 billion to build a world-class and eco-friendly infrastructure in TRX, including a 4ha urban park and a loop tunnel system.
“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,” he noted.
In May 2016, the company tendered out the next phase of infrastructure work that involves the construction of underground tunnels, the Jalan Tun Razak-TRX Ingress and Egress, as well as the SMART-TRX Ingress and Egress. Also included is the elevated path for the MEX-TRX Ingress.
“We expect to award the package in the first quarter of 2017,” added Azwar.
Image sourced from mytimes
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
