The Minister of Finance Inc (MOF Inc) is jointly developing the Exchange 106 Tower at TRX (TRX Tower) with the Mulia Group.
- Nett lettable area of 2.8 million square feet space
- One of Malaysia’s three iconic structures
- 15th tallest building in the world
In a statement yesterday, it said, the construction of the tower was expected to be completed by the second half of 2018.
The MOF Inc, via its wholly-owned unit, MKD Signature Sdn Bhd, took over 51% of the shareholding in Mulia Property Development Sdn Bhd in July 2017.
Mulia Property, a company incorporated in Malaysia, has a paid-up share capital of RM500,000.00 and it is jointly owned by Mulia Group (49%) and MKD (51%).
MOF Inc said the cost of the development of the TRX Tower would be borne by the two shareholders based on their respective proportions of shareholding in the joint-venture (JV) based on the original cost of the development.
“MKD has made arrangements with the HSBC Bank for a standby line to finance its proportional construction cost of 51% without any added premium by the JV company,” MOF Inc said.
In May 2015, Mulia Property bought the 3.42 acres for RM665 million from TRX City Sdn Bhd.
“The sale of the TRX land to Mulia was done on commercial terms with no discount accorded to Mulia,” it said.
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 strategic location of the TRX Tower and the iconic nature of the development gave strong impetus for the MOF Inc to participate in the development and management of the tower.
“With the entire TRX development area expecting to command a gross development value of RM40 billion, it is therefore vital for the MOF Inc to ensure that it secures another strategic position in the progress and success of TRX development,” MOF Inc said.
The TRX Tower would have a nett lettable area of 2.8 million square feet. Upon its completion, the tower would be one of Malaysia’s three iconic structure, following Petronas Twin Towers and Permodalan Nasional Berhad’s Merdeka 118.
“The TRX Tower is also set to be the 15th tallest building in the world by the time of completion.
“Of significance, this is not the only strategic partnership by the MOF Inc in TRX development area,” it said.
The MOF Inc had also teamed up with Lendlease (Australia) 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 would serve as the catalyst for the development and construction of the surrounding commercial plots within the TRX.
Reputable organisations such as HSBC, Prudential Insurance, Affin Bank Berhad, Tabung Haji and Landlease (Australia) had already committed to taking up commercial plots within the TRX. Negotiations are underway for other international organisations to participate as well.
“The TRX Tower will be the crowning success of the Tun Razak Exchange’s synergistic role in positioning Malaysia’s growing prominence in the world of global finance,” MOF Inc said.