Tun Razak Exchange

The Tun Razak Exchange, TRX (previously known as Kuala Lumpur International Financial District or KLIFD) is a 70-acre development by 1Malaysia Development Berhad (1MDB) in the heart of Kuala Lumpur for international finance and business. TRX is a strategic enabler of the Malaysian government’s Economic Transformation Programme (ETP).

The master plan includes a total of 26 buildings and over 21 million ft2 of total building Gross Floor Area (GFA) spread across office, residential, hotel, retail, F&B and cultural offerings.

TRX has a development period of 15 years to be completed in phases with the initial Phase 1 slated for completion in 2017/2018.[1]

Developer

The Master Developer of TRX is TRX City Sdn Bhd, a company wholly owned by the Malaysian Minister of Finance, Inc.

Location

Tun Razak Exchange is located in on the eastern edge of Kuala Lumpur's central business district, sandwiched between Bukit Bintang, Pudu, Cochrane, Kampung Pandan and Ampang Hilir. The Royal Selangor Golf Club is across Jalan Tun Razak, as well as RHB Bank's national headquarters and Zouk KL.

Transportation

Public transportation

Since July 2017 there is an  SBK20  MRT station immediately on-site, part of the MRT SBK Line. Previously the closest rail station to the project is the  MR5  Imbi Monorail station. rapidKL bus route T407 (an MRT feeder route) connects the MRT station to Kampung Pandan while the longer route 402 (ordinary route) connects to Maluri, Jalan Ampang, KLCC, Hospital Kuala Lumpur and finally the Titiwangsa bus hub.

Car

The Tun Razak Exchange site is located near the entrance to the SMART Tunnel E38 and adjacent to the junction of Jalan Tun Razak, Jalan Kampung Pandan and Maju Expressway E20 which connects downtown Kuala Lumpur to Cyberjaya. A connection to a planned extension of DUKE E33 is also in the works. [2]

Investors

Lendlease - Mixed-Use Development

In March 2015, TRX City Sdn Bhd, a wholly owned subsidiary of the Malaysian Minister of Finance Inc., signed a Lifestyle Quarter Joint Venture Master Framework Agreement with Lendlease, an Australia-based property and infrastructure group to develop the TRX's Lifestyle Quarter. Lendlease has a 60% stake in the joint venture and TRX City Sdn Bhd has the remaining 40%.[3] The retail-led mixed-use development entered the construction phase in September 2017 after a 2-year design period. It will occupy over 17 acres and would comprise a retail mall (called The Exchange), 6 residential towers (TRX Residences) and a luxury hotel connected to a multi-layered central park as well as the Tun Razak Exchange MRT Station.[4] Once completed, the development has a forecast gross development value of over RM 8 billion.[5] [6] The Exchange, with a nett lettable area of 120,773 square metres, will be a shopping, dining, leisure and entertainment destination featuring over 500 shops.[7]

In October 2017, Lendlease Development Malaysia Sdn Bhd said that more than 26% of the 1.3 million square feet of net lettable area (NLA) of the Exchange (the retail space at the TRX Lifestyle Quarter) had been successfully leased to three anchor tenants: (1) Seibu, a Japanese departmental store, (ii) the Dairy Farm Group of Hong Kong (for an upscale supermarket), and (iii) Golden Screen Cinemas.[8]

Lembaga Tabung Haji - Mixed-Use Development

Lembaga Tabung Haji bought a 0.631 hectare piece of land in TRX for RM188.5 million in 2015. In 2017, Tabung Haji announced that its TRX development would encompass a mix of apartments, serviced apartments, and other commercial developments, with a gross development value estimated at RM900 million. [9]

Mulia Group - The Exchange 106

The Exchange 106 TRX KL

Following the partnership with Lendlease, TRX announced its Sale and Purchase agreement with the Mulia Group to develop the Signature Tower.[10] In April 2016, the Mulia Group announced that all excavation, blasting, piling and site work have been completed within a span of three months. The next phase of the construction of the Signature Tower, saw the pouring of concrete, a massive 20,000 m3 mat foundation. The Signature Tower, now named The Exchange 106, which will be the tallest building in TRX and Malaysia, is the TRX's centre piece landmark. It will have 106 floors with massive column-free floor plates ranging from 28,000 to 34,000 square feet, a gross floor area of about four million sq. ft., and a nett lettable area of 2.8 million sq ft[11]

HSBC Bank Malaysia - Headquarters

HSBC Bank Malaysia will invest US$250 million to acquire land and build its future headquarters at the TRX’s financial district. Presently HSBC's Malaysian headquarters is located at Medan Pasar, adjacent to Masjid Jamek. The new HSBC headquarters will have a minimum office space of 568,000 square feet. HSBC Bank Malaysia is the first wholly foreign-owned bank to invest in TRX. It has appointed IJM Construction Sdn Bhd as the contractor to undertake the design and construction of the HSBC Malaysia headquarters for a contract sum of approximately RM392 million (excluding lifts and facade works), with completion expected to be in December 2020.[12] [13] [14].

Prudential Malaysia - Headquarters

Prudential Malaysia will be relocating its Malaysia headquarters to a 27-storey purpose-built building in the TRX’s financial district. The new Prudential headquarters, which is located adjacent to TRX's main pedestrian gateway from the Bukit Bintang area, will incorporate the traditional Malaysian element of tengkolok di-Raja (a Malay royal headgear). With a gross floor area of about 560,000 sq ft, the building will house all of Prudential’s life insurance and asset management businesses in Malaysia under one roof. The owner-cum-developer of this building is IJM Corp Bhd, through its wholly owned subsidiary Fairview Valley Sdn Bhd. IJM Construction Sdn Bhd is the main contractor of this Grade A, LEED Gold-certified office building. Construction work on this 27-storey building started in January 2017 and by December 2017, IJM had completed the building’s structural works up to its top floor. It is slated for completion in December 2018 and as af the second half of 2017, IJM had already secured tenants (which includes Prudential Malaysia) for 84% of its net lettable area. [15] [16] [17] [18] [19]

Affin Bank - Headquarters

Affin Bank Berhad will build its new headquarters[20] on a site located in the district’s Financial Quarter. In April 2017, the bank signed an agreement to acquire a 54,266 sq ft plot of land on which it will build a 823,500 sq ft, 35-storey headquarters, for a total cost of RM555 million.[21]

CCCC - Asean Regional Headquarters

China Communications Construction Co Ltd (CCCC) will build a commercial tower that it will use as its hub for the Asean region. The CCCC tower will be constructed on the land that was previously earmarked for the construction of high-end serviced apartments by WCT Holdings, but this has been denied by WCT - see the WCT section below. [22]

WCT Group - Residential Development

In Oct 2015, WCT Holdings Berhad, through its subsidiary WCT Precious Development Sdn Bhd (WCTPD), entered into an agreement to purchase a plot of land within TRX for a sum of RM223 million. Together with this, WCT was awarded a RM754 million contract to construct and complete infrastructure and roadways in TRX. In Aug 2017, WCT announced that its subsidiary WCT Land Sdn Bhd and WCTPD had entered into an agreement with CCCG Overseas Real Estate Pte Ltd (CORE) to jointly develop this plot of TRX land. WCT Group has proposed a residential development to be undertaken comprising a tower block of high-end serviced apartments with complimentary retail components.[23] [24]

Veolia Water - Water Treatment and Recycling

TRX signed a 20-year concession agreement with Veolia Water Technologies Southeast Asia in September 2014, for wastewater treatment and recycled water supply in TRX.[25] A key component of TRX’s sustainability framework, the district is supported by Veolia’s onsite cooling system to reduce energy consumption and waste water recycling treatment to conserve water, as well as a large urban public green realm for Kuala Lumpur.

References

  1. "About Tun Razak Exchange". Tun Razak Exchange. 2016-11-10. Retrieved 2017-09-10.
  2. "TRX to be linked to 3 major highways". The Rakyat Post.
  3. "1MBD Real Estate, Lend Lease ink TRX lifestyle quarter deal". The Star Online.
  4. "Construction of Lendlease's TRX Lifestyle Quarter in full swing". The Star Online.
  5. "Tun Razak Exchange project ready for showcase". Jakarta Post. Jakarta Post.
  6. "Lifestyle quarter to front TRX". The Star Online.
  7. "TRX LIFESTYLE QUARTER". LendLease.
  8. "LTRX retail mall gets three anchor tenants". The Star Online.
  9. "Tabung Haji's TRX project to boast of iconic and spectacular design". New Straits Times.
  10. "1MDB Real Estate signs with Indonesia's Mulia to build TRX tower". The Star Online.
  11. "Mulia to make Signature mark". The Star Online.
  12. "$250 mln to build HQ in TRX financial district". Reuters. Reuters.
  13. "HSBC makes major investment in Malaysia" (PDF). TRX.my. TRX.
  14. See the Knight Frank 2017 2H Real Estate Highlights Report
  15. "Prudential relocates its HQ to TRX". thestar.com.my. The Star.
  16. "Insurance Giant Prudential joins TRX". TRX.my. TRX.
  17. "IJM to develop and own Menara Prudential in upcoming TRX". thestar.com.my. The Star.
  18. "Malaysia Real Estate Highlights - 2H2017" (PDF). knightfrank.com.my. Knight Frank Malaysia.
  19. "All 27 storeys of TRX tower completed". thestar.com.my. The Star.
  20. "Malaysia's Affin buys land plot for $65 mln in KL financial district". Reuters. Reuters.
  21. "Affin Bank buys RM255m land in TRX for new HQ". The Malaysian Reserve. The Malaysian Reserve.
  22. "China's CCCC to make KL its Asean hub, build tower at TRX". thestar.com.my. The Star Malaysia.
  23. "WCT wins major contract in TRX". New Straits Times.
  24. "Delay in WCT's TRX infra project not a major concern". The Edge Markets.
  25. "Waste Not, Want Not". TRX Microsite.

See also

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