TRX land parcels all sold, mostly bought by foreigners

PETALING JAYA: All parcels of land for Stage 1 of the 28.3ha mixed development at the RM18bil Tun Razak Exchange (TRX) have been sold to investors, with master developer 1Malaysia Development Bhd (1MDB) retaining about five parcels for itself, said sources.

A source said that the majority of investors who took up the parcels of land were foreigners.

“1MDB has decided to keep about five parcels for itself, as it wants to develop them for some long-term recurring income,” said the source.

Last December, TRX carried out its investor memorandum process where it was looking for international and local investors in the form of joint-venture partnerships or outright plot sales for Stage 1 of TRX.

Subsequently, international property and infrastructure group Lend Lease was chosen, following an international bidding process overseen by CBRE, a global property consultant.

Stage 1 of TRX comprises four office towers, including a signature tower, five residential towers, two five-star hotels and a retail mall. However, no development value was given then.

Stage 1 includes the “Lifestyle Quarter”, which is a retail-led mixed-use development of over 17 acres comprising a hotel, three residential towers and a new retail mall connected to TRX’s multi-layer central park.

In a statement, 1MDB said that the Lifestyle Quarter was expected to attract up to US$1bil (RM3.2bil) in foreign direct investment. Construction is now slated to commence in early-2015.

TRX is a 28.3ha mixed-use development in the Imbi area of Kuala Lumpur, which is being developed as the new financial and business district, with commercial, residential, leisure and cultural components.

Separately, the source added that 1MDB would not be asking for an extension for the filing of its accounts for the financial year ended March 31, 2014.

1MDB has until the end of the month for the auditors to sign off the accounts and another month to lodge it with the Companies Commission of Malaysia (CCM).

“Technically, it has until end-October to lodge the accounts with the CCM,” said a source.

Yesterday, 1MDB Real Estate Sdn Bhd (1MDB RE) announced that it was inviting contractors to participate in an open pre-qualification exercise for infrastructure and internal roadway works to be built at the upcoming financial and business district.

In a statement, 1MDB RE chief executive officer Datuk Azmar Talib said the earthworks package, which started in April 2013, was expected to be completed by the first half of next year.

The pre-qualification process for the next batch of work will shortlist qualified companies for the tender stage.

“The current earthworks at the TRX site involves a four-storey-deep excavation for the underground basement level of the project.

“The next packages of work would extend to the roadworks and tunnels to support our key infrastructure, including underground road structures, the installation of buried utilities and both at-grade and elevated roadways,” he said.

He added that 1MDB RE had remained faithful to the TRX masterplan as drawn up by Machado and Silvetti Associates and Akitek Jururancang Malaysia Sdn Bhd, other than some additional enhancement meant for the surrounding neighbourhoods, so that the entire area could benefit from its infrastructure.

Last week, TRX also entered into a 20-year concession agreement with Veolia Water Technologies Southeast Asia for waste-water treatment and recycled water supply in TRX.