The developer said today that Malaysia’s tallest skyscraper is ready to recruit tenants starting in December, hoping to go beyond its connection with the 1MDB scandal and focus on making progress in the oversupply real estate market.
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- TRX’s Exchange 106 expects first tenants in December
- Mulia to define KL skyline with Exchange 106
- Inside Southeast Asia’s tallest skyscraper once roiled by 1MDB
- Prudential moves into new 27-storey building in TRX
Exchange 106 is the first project completed on the Tun Razak Exchange (TRX). Tun Razak Exchange (TRX) is a new financial district in the capital Kuala Lumpur. It was launched by the now-defunct National Fund 1MDB. Prosecutors say about 4.5 billion of them the dollar was misappropriated.
In March last year, then Prime Minister Najib Razak co-founded 1MDB in 2009, when the government bought a 51% stake in the project, which is 492 meters higher than the Petronas Twin Towers. It was reviewed last March. Among the general public’s outrage over corruption, he received a share two months before he was fired before the election.
But with the completion of the 106-story glass and steel tower and the support of a new government led by Dr. Mahathir Mohamad, a former mentor of Najib, Indonesian developer Mulia Group (Mulia Group) believes that the specter of 1MDB is now behind them.
According to local media reports, after the review found that the government would be able to recover its opportunity costs and investments, Finance Minister Lim Guan Eng announced in February that TRX was “detoxifying” the odor of 1MDB.
Mulia official Patrick Honan said the building has a panoramic view of the city, and one fifth of its 2.6 million square feet of leased space has been locked, with the first tenants expected to be from December to June Check in between.
“We expect the site to grow to 1.3 million square feet by the end of next year,” Hornan said in a media interview.
Some potential tenants include top global Fortune 500 consulting firms, personal care brands in Hong Kong, e-commerce platforms, and serviced office and co-working office brands.
In addition to the exchange 106, HSBC and Affin Bank are also building a tower respectively, and Australian real estate company Lendlease is building a shopping mall, hotel and some apartments.
However, Knight Frank, a global real estate consultant, stated in his Malaysian real estate report for the first half of 2019 that Kuala Lumpur’s office rental market outlook remains hazy as new buildings without major tenants will eventually compete with existing office space.
Honan remains optimistic, saying confirmed and likely tenants are considering TRX’s future potential. “Once the complete TRX development is complete, our occupancy rate will change dramatically,” he said.