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There is more certainty and confidence in the development.

THERE is more certainty and confidence in the 28.33ha Tun Razak Exchange (TRX) development in Kuala Lumpur among investors since the government announced it will be injecting RM2.8 billion into the development to ensure that it is completed.

This could also mean more jobs for construction companies and related industries.

Upon full completion in about 20 years, TRX will have 21 million sq ft of offices, residentials, hotels and retail.

As Kuala Lumpur’s future central business district, TRX will strengthen its position as a leading centre for international finance and business by creating an integrated and seamless business environment for financial services firms, multinational corporations and ancillary businesses.

TRX City Sdn Bhd, a wholly-owned subsidiary of the Finance Ministry, is the master developer of TRX.

TRX City chief executive officer Datuk Azmar Talib said in a statement the company welcomes the ministry’s support.

“Our investors will view this commitment positively as it confirms the government’s pro-business stance.”

He said the company has made significant progress in the project and attracted world-class investors.

Prominent foreign investors in the TRX include HSBC Bank Malaysia, Prudential and Australia infrastructure and property group Lendlease.

TRX City has also sold parcels of land to Indonesia’s Mulia Group (which is building Exchange 106 Tower) and local investors Affin Bank, Tabung Haji, WCT Holdings Bhd and IJM Corp Bhd.

IJM is building Menara Prudential with an investment of RM500 million. The 27-storey building will be handed over to Prudential early next year.

IJM is also the developer of the HSBC headquarters.

Exchange 106 Tower has a nett lettable area of 2.8 million sq ft.

As of January, more than half of the building’s floor space has been taken up by large tenants, predominantly local financial institutions with the asking rent of RM17 per square foot.

Azmar said with the much-needed government support and the commitment from TRX City partners, the company looks forward to delivering the project within the schedule and budget.

The injection of RM2.8 billion announced by Finance Minister Lim Guan Eng recently will help in the completion of TRX’s infrastructure works.

Lim had said the decision will allay concerns among investors who have put in billions of ringgit.

The money will be released in stages up till 2024, starting with RM344 million expected to be disbursed this year.

Completing the TRX will allow the full value of the project of at least RM7.6 billion to be realised. The amount would help TRX City repay borrowings, recover funding investments and opportunity costs, and possibly achieve a small surplus return.

According to Lim, TRX City does not have the funds for infrastructure works and had sought assistance from the government.

TRX City also owns the Bandar Malaysia development in Kuala Lumpur.