KUALA LUMPUR: 1MDB Real Estate Sdn Bhd (1MDB RE), the property arm of 1Malaysia Development Bhd (1MDB), has invited contractors to participate in the pre-qualification exercise for infrastructure and internal roadway works for the Tun Razak Exchange (TRX) development in Jalan Tun Razak.
“The next packages of work would extend to the roadwork and tunnels to support our key infrastructure, including underground road structures, installation of buried utilities, and both at-grade and elevated roadways,” said 1MDB RE chief executive officer Datuk Azmar Talib, in a statement yesterday. The pre-qualification will shortlist companies for the tender stage for the new phase of TRX construction. According to 1MDB RE, the TRX site is currently undergoing earthworks, which involve a four-storey deep excavation for the underground basement level. This is expected to be completed in the first half of 2015.
The initial phase of the TRX development will include the “lifestyle quarter” — a retail-led mixed-used development of over 17 acres (6.87ha) of land. Australia-based property and infrastructure group Lend Lease was chosen to be the development partner for the lifestyle quarter. 1MDB RE has said the lifestyle quarter alone is expected to attract up to US$1 billion (RM3.25 billion) in foreign direct investments.
On Wednesday, The Edge Financial Daily reported that major global investors from Qatar and Abu Dhabi were considering withdrawing from 1MDB RE projects such as TRX and Bandar Malaysia. The reasons cited by a source close to the matter were the lack of transparency in the project’s planning and its slow progress. It was also reported that there had been several changes to TRX’s master plan and this has led to delays in the project.
Azmar Talib said 1MDB RE is “in the final stages of discussions with several other international and local investors”.
He maintained that the company has “remained faithful to the master plan” of the development, “other than some additional enhancement meant for the surrounding neighbourhoods”.
Azmar Talib said TRX will develop its first office tower soon. 1MDB RE had last week signed a 20-year concession agreement with Veolia Water Technologies Southeast Asia for waste water treatment and recycled water supply for the TRX project, he added.
|Earthworks have begun at the TRX site. Photo by 1MDB Real Estate Sdn Bhd|
This article first appeared in The Edge Financial Daily, on September 26, 2014.
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