The master developer of the Tun Razak Exchange (TRX) project has received numerous inquiries from potential investors following the 14th general election and the Ministry of Finance’s decision last week to inject RM2.8 billion to ensure the project’s completion.
The developer TRX City Sdn Bhd’s (TRXC) CEO Azmar Talib said he is now fielding enquiries from companies that either want to relocate their offices to TRX, or participate in its development.
“There was a long time where people were uncertain (about investing), but once the government made its decision (to complete the project), there is a big rush again because people want to be located at this place. People want to work at TRX.
“If you look at KL when KLCC was developed, we were able to attract international outfits to come into KL. But then after KLCC, we don’t have another one that is of international standing, so TRX is the next one,” he told reporters while hosting a site visit for the media.
He said investors have also renewed their confidence in Malaysia following the change of government and Prime Minister Dr Mahathir Mohamad’s assurance of a pro-business environment.
TRXC chief operating officer Tan Hwa Min added that TRCX is currently in negotiations with at least ten potential investors.
Azmar (photo below, left), however, cautioned that the negotiation process would take time.
He said it had taken four, five years to convince TRX’s current investors to invest, as the investors were international players who were serious in their due diligence process.
The TRX project was the brainchild of the former prime minister Najib Abdul Razak, and was a major project under the scandal-hit state investment fund 1MDB.
The project had since to been removed from 1MDB and placed under the Minister of Finance Incorporated (MOF Inc) instead, following recommendations by the parliament’s Public Accounts Committee in 2016.
On Thursday last week, Finance Minister Lim Guan Eng announced that the government will be forking out RM2.8 billion up to 2024 to ensure the completion of the project.
TRX scale and scope 'will remain'
This after Lim had alleged that RM3 billion meant for the project had been misappropriated by 1MDB primarily to repay its loans.
He had told reporters that it would be difficult for TRXC to secure bank financing to fund the project due to its association with 1MDB, and banks and investors also wanted the government to show commitment in the project.
He added that there will also be a “value engineering” exercise to reduce the cost of the project.
“We are looking at the value of work done within the existing contract to make sure we get value for money because we don't want to have crony relationships between contractors and those monitoring the contract,” he said.
Meanwhile, at today’s site visit, Azmar said TRXC remains committed to its existing contracts worth RM2 billion.
“For this (value engineering exercise), our technical teams and our consultants are working very closely to see how much more we can save.
“Rest assured that our value engineering exercise will be done without compromising the intended functionality and quality of the development. Our masterplan will not change; the scale and scope of the of the development will remain.
“We are committed to building a connected, functional, and sustainable central business district for Kuala Lumpur,” he said.
As for the progress of the project, the said the Exchange 106 tower is now 92 percent completed, and both the tower and Menara Prudential development on the TRX site will be ready for occupancy early next year.
The infrastructure development for Phase 1 of the project is 80 percent complete and will be ready for the opening of the two buildings.
The infrastructure for Phase 2 of the project - which comprises public plazas, streetscapes, and a city park - will be ready in 2020. This coincides with the opening of the Exchange Mall, and the new headquarters of HSBC Malaysia and Affin Bank, he said. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.