KUALA LUMPUR (Nov 21): IJM Corp Bhd is developing a RM500 million office tower at the Tun Razak Exchange (TRX) here.

This follows a share sale and purchase agreement signed today, which sees IJM acquiring Fairview Valley Sdn Bhd (FVSB), a subsidiary of TRX City Sdn Bhd that is building a 27-storey purpose-built commercial building at TRX. TRX City is the master developer of the upcoming international financial district.

IJM's construction division, IJM Construction Sdn Bhd, is undertaking the construction of the office tower, which include the sub-structure and super-structure work.

In a joint statement today, IJM and TRX said the Grade A, LEED Gold-certified office building, built over a land area of 1.18 acres with a gross floor area of about 560,000 sq ft, will be Prudential's new Malaysian headquarters.

"It will house all of Prudential's life insurance and asset management businesses under one roof," they added, noting that the building is purpose-built to support the requirements of Prudential's wide-ranging businesses.

Currently under construction, the building is slated for completion in December 2018, and has already secured tenants for 84% of its net lettable area.

IJM chief executive officer and managing director Datuk Soam Heng Choon said the latest deal marks a significant milestone for the group to invest in and develop a quality investment property, in line with its strategy to grow its recurring income asset portfolio.

To date, TRX said it has signed global property and infrastructure group Lendlease to jointly develop the Lifestyle Quarter; HSBC Malaysia, Prudential Malaysia and Affin Bank Bhd for office towers; Indonesia's leading property developer Mulia International to develop the Signature Tower plot; Lembaga Tabung Haji and WCT Bhd for residential plots; and global leader in water management Veolia Water Technologies as the water treatment and recycling concessionaire.

IJM shares closed unchanged at RM3.07 today, with 3.12 million shares traded, bringing a market capitalisation of RM11.18 billion.