HSBC Malaysia to invest US$250m to build HQ in TRX financial district

[KUALA LUMPUR] HSBC's Malaysian subsidiary said it would invest US$250 million to acquire land and build its headquarters at the Tun Razak Exchange (TRX) financial district.

In a joint statement on Thursday, HSBC Bank Malaysia Bhd and TRX City Sdn Bhd said they signed a sale-and-purchase agreement for the development of the bank's future headquarters.

While they did not give any details on when the construction would start or be completed, the bank said it planned to build a minimum office space of 568,000 square feet.

HSBC is the first foreign bank to invest in the financial district - the master developer for which is TRX City, a former 1Malaysia Development Bhd division now owned by the Malaysian finance ministry.

TRX City CEO Azmar Talib said around 70 per cent of the plots available in the financial district have been commercialized.

"TRX City continues to receive significant interest from various local and international investors and tenants, including several of the world's major banks and financial institutions," he said.

TRX is planned as an international financial district located in Kuala Lumpur city, encompassing office space, residential, hospitality, retail components.

In May, TRX City called off a US$1.7 billion deal in another major property development, Bandar Malaysia. TRX City said the buyers of a 60 per cent stake in that development had failed to meet payment obligations.

REUTERS