Tuesday, 2 April 2013

Tun Razak Exchange, Bandar Malaysia

Tun Razak Exchange

GDV RM27b (vs Putrajaya’s RM20b)

28 hectares of land

Office, residential and retail

9.6m sq ft office space

26 buildings

Nestled between two of KL’s main roads Jalan Sultan Ismail and Jalan Tun Razak

1MDB obtained the TRX land from the government for RM320 million. Its financial statements indicating a gain of RM820 million from revaluations for the year ending Mar 31, 2010.

Ready in 15 years

1st phase due for completion 2017

Incentives for TRX companies:
- 100% income tax exemption for 10 years
- stamp duty exemption on loan and service agreements
- industrial building allowance
- accelerated capital allowance
- relocation costs
- 70% income tax exemption for property developers for 5 years

Bandar Malaysia

Former Sungei Besi military airport

A residential project

160 hectares

GDV about RM20b.

1MDB purchased the land at about RM1 billion, alleged about a third of its market price


Office Space in Kuala Lumpur

Annual absorption rate of office space is about 2-2.5 million square feet

Occupancy rates for purpose-built offices in Kuala Lumpur in the third quarter of 2012 was only 77.3 percent of the 72 million square feet of office space in Kuala Lumpur.

Expects 18 million square feet of new office space in the Klang Valley by 2015, not including mega developments like the TRX, PNB’s 100-storey Menara Warisan Merdeka and the KL Metropolis which will include another 100-storey office tower

Grade A office in the city centre enjoys higher demand, occupancy rates as at mid-last year stayed level at 87 percent

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