TRX signature tower deal inked

By BUSINESS TIMES
GLOBAL ICON HUB: 1MDB and China Eximbank contributing up to US$300m to set up JV company
1MALAYSIA Development Bhd (1MDB) and Export-Import Bank of China (China Eximbank) have signed an investment cooperation agreement in Beijing to jointly develop the Tun Razak Exchange’s (TRX) signature tower, the landmark in the 28ha international financial centre.
Under the deal, both government-owned entities will contribute up to US$300 million (RM963 million) to a joint venture company that will build the signature tower.
The company will also drive investment initiatives, both at home and abroad, offered by sectors such as hospitality, commercial aquaculture, agriculture and infrastructure.
Prime Minister Datuk Seri Najib Razak, who is also chairman of 1MDB board of advisers, has said the signature tower will be promoted as the focal point for Chinese investors coming to Malaysia as well as a key centre for new businesses for the world’s economic powerhouses.
Najib, who was in China to celebrate the 40th anniversary of Malaysia-China diplomatic relations, witnessed the exchange of documents between China Eximbank vice-president Yuan Xingyong and 1MDB managing director and chief executive officer Mohd Hazem Abd Rahman for the investment cooperation deal.
“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.
“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,” said 1MDB and China Eximbank in a joint press statement issued on Saturday.
TRX is a key step towards achieving the goals of the government’s Economic Transformation Programme to turn Malaysia into a high-income economy by 2020.
The stage one of the project will see the development of four office towers, including the signature tower, up to five residential towers, up to two five-star hotels and a retail mall.
TRX has a development period of 15 to 20 years and the initial phase of construction is slated for completion in 2017.
The financial district aims to bring together leading financial institutions and top global companies in one place, spurring growth in new areas for Malaysia to better compete on the global stage.