KUALA LUMPUR, June 28 — The Tun Razak Exchange (TRX) master developer TRX City Sdn Bhd (TRXC) looks forward to welcoming businesses in the first quarter of 2019, following completion of the first phase of the financial district.
Chief Executive Officer Datuk Azmar Talib said the government’s recent announcement of support for the completion of TRX had boosted investors’ confidence and bolstered the company’s capacity to deliver all aspects of the development.
“Phase 1 of TRX comprises The Exchange 106 and Menara Prudential, both of which are slated for occupancy early next year. To date, 80 per cent of the first-phase infrastructure has been completed. We expect full completion in time for the opening of the two buildings,” he said during a media briefing and TRX site visit here today.
Phase 2 of the TRX infrastructure, which consists of a public plaza, streetscapes and the 4.04-hectare Central Park, will be completed in 2020, in line with the opening of the Exchange Mall and the new headquarters (HQ) for HSBC Malaysia and Affin Bank.
TRXC will embark on a value engineering exercise to optimise operations.
“We are currently working with our technical experts and consultants to enhance the project’s cost structure. Rest assured, our exercise will be done without compromising the intended scale, functionality and quality to create a new central business district (CBD) for Kuala Lumpur,” Azmar said.
Last week, the Ministry of Finance (MoF) announced the infusion of RM2.8 billion in tranches into TRXC to enable it to complete the TRX project. Construction has been going on since 2012 and the infrastructure is slated to be completed in 2024.
On the additional RM2.8 billion provided by the government, Azmar said TRXC would be frugal and would brief its shareholders, including the MoF, on development plans, as the ministry would not provide a lump sum payment but pay as and when required.
As Kuala Lumpur’s future CBD, TRX is expected to strengthen the city’s position as a leading centre for international finance and business by creating a seamless and central business environment for financial services firms, multinational companies and other businesses.
The financial district’s masterplan combines sustainability, attractive public domains and great connectivity to create a world-class international urban ecosystem at the heart of Kuala Lumpur.
The outlook for TRX remained strong, said Azmar, adding that there was renewed confidence among investors that would help attract high quality foreign direct investments (FDI).
“I’ve spoken to a few investors, both local and international, who are keen to be part of TRX. They have expressed confidence in the government’s pro-business stance and direction and also Malaysia’s future prospects.
“TRX has attracted high-quality FDIs and we look forward to more,” he added.
Azmar said once Putrajaya made the decision to complete TRX, there was again a big rush of investors who wanted to locate to the financial hub.
“When the Kuala Lumpur City Centre (KLCC) was developed, it was able to attract international offices to come to Kuala Lumpur. But after KLCC we did not have any infrastructure of similar international standing. So TRX is next (in line),” he noted.
To date, TRX has signed up global property and infrastructure group Lendlease to jointly develop the Lifestyle Quarter; Indonesia’s leading property developer Mulia International to develop the Exchange 106; HSBC Malaysia and Affin Bank Bhd for their new HQs; IJM Bhd to build Prudential Malaysia’s new HQ; and Lembaga Tabung Haji and WCT Bhd for residential plots.
Azmar said apart from the high-quality masterplan, each building in TRX would be at least grade-A or super grade-A quality.
On the challenge to achieve full occupancy, he said Prudential, Affin and HSBC would have their own buildings that would be self-utilised, whereas the only building with space available for rental in TRX was The Exchange 106.
“I believe the (Exchange 106) developer, Mulia Group, is making efforts to fill up the space,” he added.
TRX’s total land value stands at RM7.6 billion, and the additional RM2.8 billion funded by MoF is part of the RM5.6 billion cost of development. — Bernama