KUALA LUMPUR: Lendlease announced that it has secured a new capital partner for its flagship development in Malaysia, The Exchange TRX, marking further progress in the company's capital recycling program.
The announced investment by a Malaysian family office comprises the acquisition of a 40% interest in the development's retail mall from the real estate company and its full 60% interest in the office asset. The transaction, valued at approximately RM1.1bil, reflects the precinct's strong performance and appeal as a major draw for visitors, retailers and businesses.
"The announcement underscores confidence in the precinct's long-term potential, growth, as well as in the quality of assets we've created. Combining our sector expertise with local investment, we are well-positioned to build on the precinct's momentum and drive even greater value for customers and partners," said Lendlease investment management chief executive officer Justin Gabbani.
Since opening in 2023, the retail mall has welcomed a high calibre of tenants, including Apple's first retail store in Malaysia and the national debut of brands such as Gentle Monster, Alo Yoga and Molten Brown. In its first year of trading, the mall turned over RM2.64bil in sales and welcomed 45mil visitors.
"The strong performance of The Exchange TRX highlights the quality and appeal of the precinct and introducing an established Malaysian partner is a strong endorsement of that success," he said.
JLL Asia Pacific capital markets chief executive officer Stuart Crow said that they were delighted to have assisted the company in the transaction.
"Investor demand remains strong for genuine mixed-use assets that generate diversified income streams and best-in-class environments for occupiers.
"The Exchange TRX has reshaped Kuala Lumpur's skyline and is now firmly established as Kuala Lumpur's preeminent retail, commercial and entertainment destination. Its position as arguably the market's most desirable new address is underpinned by its scale, quality and strategic positioning within the TRX precinct," he said.
Lendlease will continue to hold a 20% interest in the retail mall and continue to provide asset and property management services to The Exchange TRX's assets. It will also retain a 60% interest in the residential land plots, as well as a 60% interest in the completed hotel. The transaction is subject to the satisfaction of conditions precedent and is targeted to be completed in the second half of the 2026 fiscal year.
