KUALA LUMPUR (Mar 19): 1Malaysia Development Board Bhd (1MDB) and Australia-based real estate group Lend Lease will jointly develop an estimated RM8 billion mixed property portion within the proposed Tun Razak Exchange (TRX) here.

1MDB's wholly-owned subsidiary 1MDB Real Estate Sdn Bhd is the master developer for the US$8 billion (RM29.43 billion) TRX within 28 ha (70 acres) near Jalan Bukit Bintang and the iconic Petronas Twin Towers here. TRX will be positioned as an international financial district in Malaysia.

1MDB Real Estate CEO Datuk Azmar Talib said in a statement the company signed today joint venture agreements and a sale and purchase deal with Lend Lease for the RM8 billion mixed-property portion.

Azmar said the portion, known as the Lifestyle Quarter, would be a retail-led mixed-use development on over 6.8ha (17 acres). The project will include a new retail mall, several residential towers and a hotel.

"The Lifestyle Quarter has a forecast gross development value of over MYR8 billion upon completion, with Lend Lease owning 60% of the partnership and 1MDB RE (1MDB Real Estate) owning 40%," Azmar said.

The agreements signed today followed the signing of a master framework agreement between 1MDB Real Estate and Land Lease last October.

Today, Azmar said, "We are proud to announce this inaugural investment in TRX with Lend Lease, a strong and reputable international partner."

“We will announce more commitments from top-tier local and international investors in the coming months,” he said.