TRX City is in preliminary talks with several parties, both local and international prospective investors

by RAHIMI YUNUS / pic by MUHD AMIN NAHARUL

The Tun Razak Exchange (TRX) is getting more interest from potential investors following the government’s announcement to proceed with the project.

TRX City Sdn Bhd — the master developer of the project — said the company is in preliminary talks with several parties who have expressed interests in being part of TRX.

“There are so many people, both local and international prospective investors, who have approached us and want to take the opportunity in TRX after the announcement was made. But, it is too preliminary for me to tell about the quality of each discussion,” CEO Datuk Azmar Talib said during a project site visit yesterday.

He said the government’s RM2.8 billion capital injection and pro-business stance have also reignited investors’ confidence in the project.

“The RM2.8 billion will be given in stages as and when it is required,” Azmar said.

TRX City is currently working with technical experts and consultants to enhance the project’s cost structure while maintaining the intended scale, functionality and quality of the future financial hub in Kuala Lumpur.

“We are currently working with our technical experts and consultants to enhance the project’s cost structure. Rest assured, our exercise will be done without compromising the intended scale, functionality and quality to create a new central business district for Kuala Lumpur,” Azmar said.

Last week, the Ministry of Finance announced the injection of RM2.8 billion to TRX City to enable it to complete the project. Since 2012, the federal government has guaranteed borrowings, extended advances and provided transfers to, as well as purchased land from TRX City amounting to RM3.6 billion.

The RM2.8 billion injection would push total funding by the government to RM6.5 billion. Completing TRX will allow the full value of the project of at least RM7.6 billion to be realised.

The first phase of the 70-acre (28.3ha) development is slated for completion in the first quarter next year (1Q19) when The Exchange 106 and Menara Prudential open for occupancy. Phase 1 has reached 80% completion to date.

Phase 2 of TRX is targeted to be completed in 2020 with the opening of the Exchange Mall and the headquarters for HSBC Bank Malaysia Bhd and Affin Bank Bhd.

The final phase of TRX, the south side parcel, is expected to be completed in 2024.

Azmar said TRX City still has four plots of land in the north side that are yet to be commercialised.

Other current investors in TRX includes Indonesia’s property developer PT Mulia International, French company Veolia Water, IJM Corp Bhd, Lembaga Tabung Haji and WCT Holdings Bhd.

TRX City, which is a company under the Ministry of Finance, recently lodged a police report in relation to the alleged RM3 billion misappropriation by the previous administration that was supposed to be channelled to TRX, but was used to pay 1Malaysia Development Bhd’s debts instead.

TRX City has pledged full cooperation to the police on the matter.