KUALA LUMPUR: Australia-based Lend Lease and 1MDB Real Estate Sdn Bhd (1MDB RE) — a unit of 1Malaysia Development Bhd — have signed a binding agreement to work exclusively together to finalise the joint-venture documentation and commence work on the Tun Razak Exchange (TRX) Lifestyle Quarter.
1MDB has chosen the international property and infrastructure group as a major partner for part of its development.
1MDB in a statement yesterday said the development of the lifestyle quarter is expected to attract up to US$1 billion (RM3.23 billion) in foreign direct investments to Malaysia.
Lend Lease will be the majority shareholder in the joint venture, while 1MDB RE will hold a significant stake.
The TRX Lifestyle Quarter has a forecast gross development value of more than RM8 billion and over 28.33 ha (70 acres) of mixed-used development in Kuala Lumpur.
“Attracting a global brand like Lend Lease is clear evidence of the potential and international appeal of TRX. We are very excited to move forward and a project of this scale will bring many spillover benefits to the local economy,” said 1MDB group chief executive officer (CEO), Mohd Hazem Abd Rahman.
Lend Lease was chosen from a pool of international and local bidders for the lifestyle quarter, following an invitation in December last year.
Meanwhile, Lend Lease Group CEO Steve McCann said the company was delighted to have an opportunity to partner 1MDB to transform the TRX into a world-class leading financial hub and an iconic destination globally.
TRX has a development period of about 15 years and will be built in demand-driven phases. The initial construction phase, including the lifestyle quarter, is slated to begin in early 2015.— Bernama
This article first appeared in The Edge Financial Daily, on June 26, 2014.