KUALA LUMPUR: The development of the 70-acre Tun Razak Exchange, commonly known as TRX, as a district has picked up speed with 80% of the infrastructure and the looped highway and tunnels expected to be completed by between June and August this year.
Master developer TRX City Sdn Bhd chief executive officer Datuk Azmar Talib said Menara Prudential and the 106-storey Exchange 106 would be ready for occupation this year, and in the process of being certified suitable for occupation.
“We are actually ahead of schedule,” Azmar said at a Common Estate Agreement signing ceremony among parcel owners here yesterday.
Azmar pointed out that much progress and important milestones have been made with the launching of 17-acre TRX retail by Australian group Lendlease and it securing RM2.15bil financing facility in December 2018.
The signing of the Common Estate Agreement, which took about 18 months to be ironed out by all parties represented another milestone. This is the first time such an agreement has come into force in Malaysia’s real estate development, according to Azmar.
The agreement involved TRX City as the master developer and all plot owners in the 70-acre development which will become a district with post code 55188.
The Common Estate Agreement is to ensure the long-term maintenance, management and services are provided as agreed among all parcel owners.
Azmar said having gone through the planning and commercialisation of the TRX, his current focus is the completion of the infrastructure and its brand position.
“The infrastructure for Menara Prudential is already done. The certification for occupation should come through around the second quarter of the year.
“I need to help plot owners attract the right kind of tenants,” he said.
He declined questions on the rental rate of some of the city’s top notch super prime office space that would be entering, or have already entered, the market; some with rental of between RM10 and RM11 per sq ft.
Super prime office space, which includes Kuala Lumpur City Centre and its vicinity, PNB118, Bukit Bintang City Centre and TRX, is a couple of notches above grade A office space which commands rental of between RM7 and RM8 per sq ft.
After the rent-free period and landlords bearing cost of fit-out of the space, this could go down to about RM6.50 per sq ft.
By comparison, property research consultancy JLL reported in September 2018 that grade A space in Singapore’s commercial business district is about S$10 per sq ft.