Lend Lease Enters $2.2B JV for Malaysia’s New Financial District
- Mar 30, 2015
Kuala Lumpur, Malaysia—Lend Lease has partnered with Malaysian Government-owned real estate developer 1MDB RE for the construction of the “Lifestyle Quarter,” the initial phase of the Tun Razak Exchange (TRX) global hub for international finance and business taking shape in Kuala Lumpur.
Based on the concept of a unique work-live-play experience, Lifestyle Quarter will cover more than 17 acres of mixed-use development, including a shopping mall integrated with TRX’s multi-layer central park, several residential towers and a hotel. Construction on the project is expected to begin in late 2015 and be complete in 2017.
Under the joint venture agreement, the Australian property and infrastructure company will act as development manager for the project, which has an estimated end value of approximately $2.2 billion (AUD $2.8bn). The contract finalizes the master framework deal the partners signed last October, with Lend Lease owning 60 percent of the partnership and 1MDB owning 40 percent.
“Lend Lease has operated in Malaysia for over 35 years and has worked on notable projects including the iconic Petronas Twin Towers, Setia City Mall and most recently Pinewood Iskandar Malaysia Studios,” Lend Lease Group CEO & managing director, Steve McCann, said. “The Lifestyle Quarter at TRX provides an opportunity for continued success in the region, leveraging Lend Lease’s global capabilities in partnering with national and city governments in major cities around the world to redevelop large-scale urban regeneration projects.”
Other notable projects Lend Lease has been involved in include Barangaroo South and Darling Harbour Live in Sydney, Australia and The International Quarter and Elephant & Castle in London, UK. The company was selected to partner with 1MDB in the Lifestyle Quarter development in June 2014.
TRX, formerly known as Kuala Lumpur International Financial District, is a multi-phase public-private master development meant to increase the number of world leading companies to the city, attract knowledge-based talent and drive greater economic growth for the country. Construction is expected to span over the course of 15 years. Upon completion, the approximately 70-acre district is expected to host 250 global financial services companies and create about 40,000 skilled and knowledge-based jobs.
Photo credits: www.1mdb.com