KUALA LUMPUR: The Minister of Finance Incorporated (MOF Inc) is jointly developing the Exchange 106 tower at TRX (TRX Tower) with the Mulia Group and construction is expected to be completed by the second half of 2018.
MoF Inc had on Thursday confirmed its unit MKD Signature Sdn Bhd for the joint development with the Mulia Group and the costs would be borne by the two parties based on their shareholding.
The TRX Tower is part of the entire TRX development area which is expected to have a gross development value of RM40bil.
The MOF Inc’s participation in the development of the TRX Tower was agreed at the onset to only materialise when the project has reached certain development milestone.
The TRX Tower's strategic location and the iconic nature of the development gave strong impetus for the MOF Inc to participate in the development and management of the tower.
To recap, MKD acquired a 51% stake in Mulia Property Development Sdn Bhd – a company incorporated in Malaysia with a paid-up share capital of RM500,000 – in July 2017. The remaining 49% is owned by the Mulia Group.
“MKD has made arrangement with the HSBC Bank for a standby line to finance its proportional construction cost of 51% without any added premium by the JV company,” said MoF Inc.
In May 2015, Mulia Property Development Sdn Bhd bought the 3.42 acres TRX land at the price of RM665mil from TRX City Sdn Bhd.
“The sale of the TRX land to Mulia was done on commercial terms with no discount accorded to Mulia,” MoF Inc said.
The TRX Tower will have a nett lettable area of 2.8 million square feet space. Upon its completion, the tower will be one of Malaysia’s three iconic structure, following Petronas Twin Towers and Permodalan Nasional Berhad’s (PNB) Merdeka 118.
The TRX Tower is also set to be the 15th tallest building in the world by the time of completion.
MoF Inc said this was not its only strategic partnership in TRX development area.
It had also teamed up with Australia's Lendlease to develop the Lifestyle Quarter, a 17-acre mixed-use development area within the TRX. Lendlease has a 60% stake and MoF Inc the remaining the 40%.
The completion of the TRX Tower will serve as the catalyst for the development and construction of the surrounding commercial plots within the TRX.
HSBC, Prudential Insurance, Affin Bank Bhd, Tabung Haji, Landlease (Australia) have already committed to take up commercial plots within the TRX and negotiations are underway for other international organisations to participate as well.
The TRX Tower will be the crowning success for the Tun Razak Exchange’s synergistic role in positioning Malaysia’s growing prominence in the world of global finance.