TRX City in no hurry to develop remaining land

TRX City Sdn Bhd (TRXC) is not in a rush to develop the remaining 30 per cent of the 28.33-hectare Tun Razak Exchange (TRX).

Chief executive officer Azmar Talib said TRXC’s focus now was to complete the first phase of its infrastructure development, targeted for the third quarter of this year.

He said the conditions of the property market condition would also be a key factor in its future move.

"It’s a business call. If the market is not good, why should I sell now? As a responsible developer, we don't want to glut the market.

"In addition, the site is very tight now, so we can't develop (it) in one go as we need to allow space for construction and logistics," he said after the sigining of Common Estate Agreement (CEA) governing the Tun Razak Exchange financial district with seven tenants today.

They are Lendlease Malaysia, Mulia Property Development, HSBC, Affin Bank Bhd, IJM Corp Bhd, Urusharta Jemaah Sdn Bhd, and CORE Precious Development Sdn Bhd.

The projects undertaken by the companies represent 70 per cent of TRX development.

He disclosed that the gross development value (GDV) of the current development was already more than half of the targeted RM40 billion.

"We are about there. We are building half of the targeted 24 million sq ft gross floor area, but the GDV we’d got now is already more than half," Azmar said.

On the progress, he said Menara Prudential and Exchange 106, being developed by IJM Corp and Mulia Property, were at the final stages of completion, with the first tenants set to move in by mid-2019.

Meanwhile, the headquarters of HSBC and Affin are scheduled for completion in 2020.

On new investors, he said TRXC is looking at those who are able to support the vision of making TRX a financial centre, adding that it has received a lot of interest.

"So many people come knocking, but I can't simply entertain them. We need to go through tender processes," he added.

In addition, he said TRXC has received roughly 10 per cent of the RM2.8 billion funding for the TRX project from the government.

Federal Territories Minister Khalid Abdul Samad (photo), who witnessed the CEA signing, said it was the first agreement of its kind in Malaysia.

Through the CEA, TRX, the authorities and investors will be working together to ensure that its value will be sustained over the long period and deliver a good return on investment to the country.

"This marks a new era of common ownership and public-private partnership to create a world-class environment that provides an enhanced level of service.

"This I believe, will make KL a better city to live in," he said.

Khalid said the Kuala Lumpur City Hall is also working with TRX to create a 500-metre pedestrian boulevard to connect TRX’s northern entrance with Bukit Bintang.

This will extend Kuala Lumpur’s shopping belt all the way to Jalan Tun Razak through TRX's 4.05-hectare City Park.

"We hope the park, which will belong to DBKL and be maintained by TRX, will be a future pride of Kuala Lumpur," Khalid said.

He said City Park has the potential to be one of the leading public parks in the region.

"The park, which will sit on The Exchange Mall in TRX, will have open green space, sports and children’s play facilities, open-air dining, and a venue for concerts and cultural celebrations," he added.

- Bernama