Sale of land within the Tun Razak Exchange (TRX) will be temporarily halted over the next two to three years until the infrastructure for the 70-acre integrated project has been set-up, reported The Star.
Its master developer, TRX City Sdn Bhd, revealed that there are two reasons for this — one is to sell the land at higher price later and the other is to make it easier to go around the site for the construction of the infrastructure.
“We don’t want to unlock everything upfront, especially when we have not yet completed building the infrastructure for the project. We believe when the infrastructure is ready, we will be able to fetch a much higher premium for the land,” said TRX City Sdn Bhd CEO Datuk Azmar Talib.
He noted that they have set aside about RM3 billion for infrastructure works to improve the area’s security, connectivity and sustainability.
At present, 60 percent or 42 acres of the land in TRX has either been sold or earmarked for development, with 40 percent or 28 acres remaining for future sale and development.
Companies that own land there include Lembaga Tabung, which purchased a 1.6-acre plot in 2015 for RM188.5 million or RM2,780 psf at a plot ratio of 10.47, while Affin Bank Bhd bought a 1.25-acre plot in the same year for RM255 million or RM4,699 psf at a plot ratio of 15.2.
WCT Bhd has also obtained 1.7 acres of residential land worth RM233 million as partial payment for RM754.8 million of construction works for TRX.
Meanwhile, a source revealed that Lendlease has decided to proceed with its 17-acre Lifestyle Quarter project within TRX two weeks ago after the master developer was carved out from the scandal-ridden 1Malaysia Development Bhd (1MDB) and placed under the purview of the Ministry of Finance.
The insider said this was a condition required by the Australia-based developer, who feared that 1MDB’s bad publicity may negatively affect its mixed-use project, which has a gross development value of around RM8 billion.
The TRX Lifestyle Quarter, which consist of a park, a shopping mall, luxury hotel and six residential towers is 60 percent owned by Lendlease, while the remaining 40 percent is held by the master developer.
The mall known as The Exchange TRX will be launched in H2 2017, followed by the TRX Residences by H1 2018. The former is expected to be completed by 2020, while the towers ranging from 40 to 57 storeys that contains a total of 2,400 apartments are targeted to be ready in phases from 2021.
Meanwhile, Indonesia’s Mulia Group is building a 92-storey office building called Signature Tower in TRX, with 45 levels having been constructed as of 31 March 2017.
Image sourced from The Star
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org