Friday 29 Mar 2024
By
main news image

KUALA LUMPUR: Property developers with developments or landbank close to the RM26 billion Tun Razak Exchange (TRX) project will stand to gain.

In a report yesterday, UOB KayHian singled out Boustead Holdings Bhd with its landbank  and Sunway Bhd with its development Sunway Velocity, as potential beneficiaries.
The project, which is headed by the government’s strategic development arm — 1 Malaysia Development Bhd (1MDB), is located off Jalan Tun Razak and is projected to generate RM26 billion in gross development value (GDV) over the next 15 to 20 years.

UOB KayHian said it is optimistic on TRX’s prospects, since it is located in a prime area and would also feature a dedicated MRT Station.

Other potential beneficiaries of the project include WCT Bhd, IJM Corp Bhd and Mudajaya Group Bhd.

Ground clearing works are already underway and the first phase of the project is expected to commence in 2013 with an estimated RM500 million to RM1 billion in earthworks.

According to the report, WCT can leverage on its experience and track record from previous jobs in Iskandar and KLIA to secure the earthworks package. The report also noted IJM Corp and Mudajaya as other potential winners.

The report, however, noted that 1MDB has yet to secure funding for these works and another RM1 billion in infrastructure and basement works, and it could rely on foreign
direct investment.

Although it has yet to be finalised, TRX will also boast incentives such as 100% income tax exemption for 10 years, 70% income tax exemption for five years for eligible property developers and stamp duty exemption on loan and service agreements.

Other incentives include industrial building allowance and accelerated capital allowance.

The first phase of the project will involve grade-A offices, which will have a gross floor area of between 750,000 sq ft and 1.5 million sq ft for a total GDV of RM5 billion to RM6 billion.

This article is appeared in The Edge Financial Daily on Sept 19, 2012.

      Print
      Text Size
      Share