Exchange 106 is one of the few Najib-era megaprojects that has emerged unscathed since Pakatan Harapan became the government.
Located within 1MDB’s flagship development, the Tun Razak Exchange (TRX) in Kuala Lumpur, the skyscraper was inevitably caught up in the money-laundering scandal that plagued the fund.
Work on the tower was well underway when Harapan swept into power on May 9 last year.
Rather than axe it like some other Barisan Nasional projects, the new government decided to bail TRX out for RM2.8 billion.
Today, TRX’s 492 metre tall signature office tower is complete and has been issued a Certificate of Completion and Compliance (CCC) for the lower half of the building. It expects to welcome its first tenants in Dec this year.
Speaking during a media preview of Exchange 106’s interior this morning, project manager Roland Suckling (above) explained how his team had taken great lengths, including working 22-hour-days, to ensure construction would be as efficient as possible.
While this did not save the high-profile project from “ups and downs”, he was nevertheless glad that Malaysia’s new tallest tower was finally tenantable.
“(Despite) that unfortunate thing that happened with 1MDB, we sort of sat below the radar. It didn’t really affect us so much.
“There were times when cash flow was a bit tight and money wasn’t rolling, and we had to finance things ourselves,” he said when asked how the 1MDB scandal had affected the construction process.
Exchange 106 is constructed and managed by Indonesian developer Mulia Group (Mulia).
Suckling revealed that the most significant disruption to the project was GE14’s regime change.
“I think the biggest disruption was when you had the change of government, that was quite a surprise to everyone.
“It caused a lot of disruption to all parts of your economy and industry. That was a bit daunting for us because everything changed [...] new people came in and they didn’t understand what was going on.
“We needed time to get (them) up to speed,” he noted.
Finance Minister Lim Guan Eng previously said that Harapan had agreed to proceed with Exchange 106 and the entire TRX after reviewing, “detoxifying” and transforming it into a viable development.
Half full by end of 2020
True to its namesake, the skyscraper soars 106 floors and offers a whopping 2.6 million square feet in office space.
Mulia targets that half of its floor space (1.3 million square feet), especially in the lower half of the building, to be taken up by the end of next year.
It has secured thus far three “major tenants” whom it declined to name. They will collectively take up some 10 floors, with expected move-in by the middle of 2020.
Also at today’s media preview was Exchange 106’s general manager Patrick Honan (above).
He opined that the tower’s spacious column-free office space, hotel-like hospitality services, plus constant maintenance would eventually help it rise above the worsening office space glut in Malaysia.
“(I think) we will see dramatic moves in occupancy once the full TRX development is complete.
“At the moment, we are an island in a sea of construction and people are starting to see now how (TRX is coming together),” Honan added.
Aside from offices, the skyscraper also comprises two retail floors and six basement carpark floors, enough for 2,116 vehicles.
A view inside the tower today revealed marble floors, walls and bathroom sinks. Offices also offer an almost 360 view of the cityscape around it.
Expected to house up to 16,000 people at full occupancy, the tower has eight elevators serving every section of the building.
It is connected to the Tun Razak Exchange MRT station and several buildings within the TRX development, including shopping mall The Exchange.
Mulia to buy tower from MOF
Mulia today declined to state how much the luxury office tower had cost to construct.
Marketing head Christine Yeap said that the conglomerate intends to be the building’s sole owner by eventually buying the Finance Ministry’s 51 percent stake.
“Once we pay up, it will be completely ours again [...]
“There is (a time frame), but I am not privy to tell you,” she said when asked.
Back in 2015, 1MDB sold a 3.42-acre plot to Mulia for RM665 million to construct Exchange 106. China State Construction Engineering Corporation is the main contractor.
In 2016, when the 1MDB scandal began making headlines worldwide, the Finance Ministry stepped in to take over the entire TRX development after 1MDB struggled with funding.
In Jan 2018, the ministry bought a 51 percent stake in Mulia’s Malaysia development arm for an undisclosed amount.
Minister Lim previously revealed that RM3.067 billion of the RM3.688 billion previously pumped into the entire TRX project had been misappropriated by the previous BN government.
Now completed, Exchange 106 has overtaken the Petronas Twin Towers as the tallest building in the country.
However, it will soon be dethroned by Permodalan Nasional Berhad’s 635m skyscraper located less than 5km from away.
Also an office tower, the Merdeka118 is slated for completion in mid-2020. - Mkini
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