Indonesian developer Mulia Group revealed that Exchange 106, Malaysia’s tallest skyscraper, is ready to receive tenants starting December, reported Thomson Reuters.
It is the first project completed in the Tun Razak Exchange (TRX), Kuala Lumpur’s new financial district that was started by the defunct 1Malaysia Development Berhad (1MDB).
The tower came under investigation in March 2018 after then Prime Minister Najib Razak (who co-founded 1MDB in 2009), purchased a 51% stake in the project. He acquired the stake two months before being ousted by a general election amidst anger over corruption.
With the completion of the 1,614 ft, 106-storey building and support from the new administration, the developer believes the ghost of the 1MDB fiasco is now behind them.
Finance Minister Lim Guan Eng said the TRX was now free of 1MDB’s taint, following a review finding the government can recover its investments and opportunity costs.
A fifth of the property’s 2.6 million sq ft of rental space has been taken up, with its first tenants seen to come in between December to June.
“We expect the take up to grow to 1.3 million sq ft by the end of next year,” said Mulia official Patrick Honan.
Some potential tenants for Exchange 106 include a Hong Kong-based personal care brand, a serviced office and co-working brand, e-commerce platforms and a top Fortune 500 global consulting firm.
However, Knight Frank’s H1 2019 report on Malaysian real estate noted that outlook for Kuala Lumpur’s office rental market “remains cloudy”, as new buildings without major tenants end up competing against existing office space.
Honan had a more positive view and believed that prospective and confirmed tenants are looking at the bigger picture of TRX’s future potential.
“We will see dramatic moves in occupancy once the full TRX development is complete,” he said.
Image source from Malaysiakini