Lendlease sells major stakes in Malaysia’s The Exchange TRX to Valiram family for A$400 million
Completion of the deal is targeted for the second half of 2026
[KUALA LUMPUR] Global developer Lendlease has struck a A$400 million (S$343.9 million) deal to sell significant interests in The Exchange TRX retail mall and office tower to Malaysia’s Valiram Family Office.
The move comes as the Australian group accelerates capital recycling to shore up its balance sheet.
In a filing to the Australian Securities Exchange, Lendlease said the transaction involves the divestment of a 40 per cent interest in The Exchange TRX retail mall and a 60 per cent interest in the adjacent office tower.
Completion of the deal is targeted for the second half of 2026, subject to regulatory approvals and customary closing conditions. Following that, Lendlease’s remaining 20 per cent stake in the fully operational retail mall will be transferred into its investments segment.
The group said it will also retain a 60 per cent interest in the residential land plots and a 60 per cent interest in the adjacent hotel, with a combined book value exceeding A$200 million.
Lendlease added that it has “appointed advisers alongside its joint-venture partner, TRX City, for the sale of 100 per cent of the hotel, while options for the land holding continue to be explored”.
Capital recycling targets
Group chief executive Tony Lombardo said the divestment forms part of Lendlease’s broader capital recycling programme, which is targeting A$2 billion of cash inflows and aims to reduce group gearing to 15 per cent by FY2026 ending Jun 30, 2026.
“We continue to be highly active on capital recycling, with more than A$3 billion of transactions under way for the second half of the financial year,” Lombardo said, adding that this includes A$2 billion of announced or advanced-stage initiatives across its business segments.
Separately, Lendlease is progressing with the sale of its remaining 25.1 per cent stake in Keyton, Australia’s largest retirement-living operator, formerly known as Lendlease Retirement Living before its rebranding in 2023. The group said exclusive negotiations with a preferred buyer are ongoing.
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A flagship retail asset
Opened in 2023, The Exchange TRX has emerged as one of Malaysia’s most prominent retail destinations. The mall spans about 1.3 million square feet of net lettable area and houses more than 400 retailers.
In its first year of operations, it recorded over RM2.64 billion (S$834.6 million) in tenant sales and attracted around 45 million visitors, according to Lendlease.
Anchored by Malaysia’s first Apple Store and Japan’s Seibu department store, the upscale mall features a host of national debuts. Key international brands making their Malaysian entry at The Exchange TRX include Drunk Elephant, Gentle Monster, Alo Yoga, Maison Kitsune and Marimekko.
The adjacent eight-level office tower has a net lettable area of about 200,000 sq ft. It forms part of the lifestyle and commercial precinct spanning 6.8 hectares within Tun Razak Exchange, Kuala Lumpur’s first purpose-built international financial district.
The retail mall was also the first in Malaysia to achieve Leed Gold certification from the US Green Building Council for its sustainability efforts. In Lendlease’s 2024 annual report, the asset was valued at about A$1.5 billion.
Valiram deepens property bet
Headquartered in Kuala Lumpur, Valiram Family Office is the investment arm of the Valiram family, which controls luxury and lifestyle retail conglomerate Valiram Group.
In October, Valiram Group, through its subsidiary, acquired the 519-room Impiana KLCC Hotel from KLCC Holdings and Magma Group for RM315 million.
The group manages more than 200 international brands in Malaysia, including Michael Kors, Tory Burch, Victoria’s Secret, Rolex and Bath & Body Works, alongside its own concepts such as Flying Emporium and Beauty Love.
Across South-east Asia, Australia and New Zealand, Valiram operates more than 400 stores spanning fashion, watches and jewellery, beauty, confectionery, as well as food and beverage.
Founded in 1935 by the late Utumal Valiram as a textile trading business in Kuala Lumpur, the group was transformed into a regional luxury retail powerhouse by his son, Jethanand Valiram, who died in 2017.
The group is now led by Jethanand Valiram’s sons Sharan, Ashvin and Mukesh Valiram.
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