Building Blocks: Tun Razak Exchange, Kuala Lumpur, Malaysia
The 70-acre integrated urban development of Tun Razak Exchange (TRX) is Malaysia’s first dedicated financial district. Judy Ong, Head of Research and Consultancy at Knight Frank Malaysia, explains its appeal.
1 minute to read
Why is it up and coming?
Set in a lush park environment, TRX is home to The Exchange 106 @ TRX, which at 492m is South-East Asia’s tallest building, and enjoys excellent connectivity with a dedicated MRT interchange on the doorstep. TRX will offer a great “work/life/play” balance for local and international workers alike and is also expected to spur rejuvenation in the neighbouring localities of Imbi and Pudu.
My favourite bits
TRX will offer a wide range of cafés and restaurants, as well as music and performing arts. The 10-acre TRX Central Park features gardens and a forest trail. Japan’s Seibu Department Store is on track to open by the second half of 2021 at The Exchange TRX and will house between 400 and 500 brands. The Exchange TRX will also include six residential towers, a hotel, office and rooftop city park, opening in phases from 2021 to 2025.
Who’s buying?
About 70% of land parcels have been sold to international property developers and construction companies, or global banking institutions. British insurance company Prudential Assurance Malaysia Bhd is the first official tenant, and TRX will also be home to the Malaysian headquarters of HSBC and Affin Bank Berhad.
What are prime yields (cap rates) in the area?
Prime office yields in Kuala Lumpur are in the region of 6.5%. Well-located newer office buildings with higher specifications generally command higher rental rates and offer higher yields.