Jun 2, 2014
1Malaysia Development Bhd (1MDB) and Export-Import Bank of China (China Eximbank) have inked an investment cooperation agreement to jointly develop the signature tower of the Tun Razak Exchange.
Signed in Beijing, the deal will see the two government-owned entities contributing up to US$300 million (RM963 million) to a joint venture firm that will build the landmark in the 28ha international financial centre.
Notably, the firm will also drive investment initiatives, both abroad and at home, offered by sectors such as commercial aquaculture, hospitality, infrastructure and agriculture.
Prime Minister Datuk Seri Najib Razak, who also serves as chairman of 1MDB board of advisers, revealed that the signature tower will be promoted as a key centre for new businesses for the world’s economic powerhouses as well as the focal point for Chinese investors coming to Malaysia.
The prime minister, who visited China to celebrate the 40th anniversary of Malaysia-China diplomatic relations, witnessed the exchange of documents between 1MDB managing director and chief executive officer Mohd Hazem Abd Rahman and China Eximbank vice-president Yuan Xingyong for the investment cooperation agreement.
“TRX’s signature tower, which will be a symbol of China-Malaysia’s enduring ties, carries strong significance as it is in prime location off Jalan Tun Razak and carries name of the late prime minister Tun Abdul Razak Hussein,” said 1MDB and China Eximbank in a joint press statement.
“The tower will be an anchor to the development of Kuala Lumpur’s international financial district, serving as a primary physical marker and icon to the 28ha business and financial hub.”
Notably, TRX is a major step towards achieving the goals of the Economic Transformation Programme to transform Malaysia into a high-income economy by 2020.
It has a development period of 15 to 20 years, with the initial phase of construction set for completion by 2017.
The project’s stage one will see the development of the signature tower, four office towers, up to two five-star hotels, up to five residential towers and a retail mall.
Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
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