Islamic Finance 

Landlease secures RM2.15b loan from major banks for Malaysia’s TRX development

| 12 February, 2019
 Amir Hisyam Rasid
Landlease secures RM2.15b loan from major banks for Malaysia’s TRX development
Finance Minister Lim Guan Eng says investment by Landlease and the commitment of the major global banks to provide financing demonstrate international business and financial community’s confidence in the development project. Image via New Straits Times

FEBRUARY 12, 2019 | 4:46PM MYT | KUALA LUMPUR

Australia-based Landlease has secured RM2.15 billion loan from major banks namely HSBC, Standard Chartered, Sumitomo Mitsui Banking Corp and Malayan Banking Bhd to complete its RM9 billion The Exchange TRX.

The 17-acre joint venture development between Finance Ministry’s TRX City Sdn Bhd and Landlease is the lifestyle precinct of the RM40 billion Tun Razak Exchange project.

Finance Minister Lim Guan Eng said investment by Landlease and the commitment of the major global banks to provide financing demonstrate international business and financial community’s confidence in the development project.

“The financing agreement was based purely on the strength of the project alone, without any new guarantees from the government,” he said at the The Exchange TRX precinct launch and development financing signing ceremony here.

The Exchange TRX will comprise a hotel, a grade A office, residential apartments, retail and leisure offerings.

Landlease holds 60 per cent in the joint venture while TRX City holds the remaining stake.

“We are confident in Malaysia’s future and congratulate the government on their vision and drive to realise this landmark project,” Landlease’s chief executive officer, Asia Tony Lombardo said.

TRX City chief executive officer Datuk Azmar Talib said it will start opening its doors to its first tenant in the second quarter of this year.

The broader TRX, 70-acre development, is a public-private partnership project.

It features an integrated Mass Rapid Transit interchange station of the Sungai Buloh-Kajang line and the Sungai Buloh-Serdang-Putrajaya line.

This is supported by direct links to major thoroughfares such as Jalan Tun Razak, the MEX highway, SMART tunnel and upcoming DUKE 3 (Setiawangsa-Pantai Expressway).

As Malaysia’s first international financial district and Kuala Lumpur’s future central business district, TRX has signed among others Indonesia’s property developer, Mulia International to develop the Exchange 106 and HSBC Malaysia and Affin Bank Bhd for their new headquarters besides Landlease.

Copyright New Straits Times 

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