KUALA LUMPUR (June 15): HSBC Bank Malaysia Bhd is building a new US$250 million headquarters in Tun Razak Exchange (TRX) here.

In a joint statement today, HSBC Malaysia and TRX City Sdn Bhd, a wholly-owned subsidiary of the Ministry of Finance Inc, said they have signed a sale and purchase agreement for the development of the bank’s headquarters, which marks the first phase of the land acquisition.

The new headquarters, with a minimum office space of 568,000 sq ft, makes HSBC the first foreign bank to invest in the TRX development.

TRX City chief executive officer (CEO) Datuk Azmar Talib said to date, around 70% of the plots available in TRX have been commercialised.

"The company continues to receive significant interest from various local and international investors and tenants, including several of the world’s major banks and financial institutions," he added.

"This investment will be fundamental to developing Malaysia as a financial centre in the Asean region, and HSBC is very excited to be part of this iconic development," HSBC Malaysia CEO Mukhtar Hussain said in the statement.

“Malaysia is a priority market for HSBC Group globally and this investment further cements our growth plans in Malaysia. The collaboration between HSBC and TRX City demonstrates our commitment to our employees, the community and our business in Malaysia," Mukhtar said, adding that the bank has been operating in the country for more than 130 years.

"Significantly, it also reinforces the important role Malaysia plays in HSBC’s Asean strategy,” he added.

Mukhtar noted that the bank's decision to invest in TRX is both a milestone for HSBC and a significant investment, reinforcing its plans to expand its franchise here.

"With our strong positioning in the country as the leading foreign bank and unparalleled international network, HSBC is ideally positioned to boost TRX’s success. I strongly believe that our collaboration will result in successfully developing the country’s financial centre,” he said.

Meanwhile, TRX City has signed global property and infrastructure group Lendlease to jointly develop the Lifestyle Quarter in TRX, Indonesia’s leading property developer Mulia Group to develop the Signature Tower plot, Affin Bank Bhd for an office tower, Lembaga Tabung Haji for a residential plot and Veolia Water Technologies as the water treatment and recycling concessionaire.

Azmar said the company is also currently working with the Kuala Lumpur City Hall on the Jalan Tun Razak traffic dispersal project and on building pedestrian-friendly walkways that will connect to the Bukit Bintang shopping belt to TRX.