KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) and Australia-based real estate group Lend Lease will jointly develop a mixed property portion within the proposed Tun Razak Exchange (TRX) here that is worth an estimated RM8 billion in gross development value (GDV).
1MDB’s wholly-owned subsidiary 1MDB Real Estate Sdn Bhd (1MDB RE) is the master developer for the US$8 billion (RM29.43 billion) TRX within 28ha near Jalan Bukit Bintang and the iconic Petronas Twin Towers here. The TRX will be positioned as an international financial district in Malaysia.
In a statement, 1MDB RE said the company yesterday signed joint venture agreements and a sale and purchase deal with Lend Lease for the mixed-property portion. The agreements were subsequent to the signing of a Master Framework Agreement between the two parties last October.
The portion, known as the Lifestyle Quarter, would be a retail-led mixed-use development on over 6.8ha. The project will include a new retail mall, several residential towers and a hotel.
“The Lifestyle Quarter has a forecast GDV of over RM8 billion upon completion, with Lend Lease owning 60% of the partnership and 1MDB RE owning 40%,” it said.
“With this Lifestyle Quarter partnership sealed, 1MDB RE will focus on delivering major infrastructure upgrades for TRX and the Imbi area with a view to accelerating the development of TRX to meet strong and tangible demand,” said 1MDB RE chief executive officer Datuk Azmar Talib.
“We will announce more commitments from top-tier local and international investors in the coming months,” he added. Lend Lease, said 1MDB RE, is an international property group offering fully-integrated services including investment management, development, construction, project management and asset and property management.
In Malaysia, Lend Lease had previously worked on the iconic Petronas Twin Towers, Setia City Mall and most recently, Pinewood Iskandar Malaysia Studios.
This article first appeared in The Edge Financial Daily, on March 20, 2015.