The agreement is with 1MDB Real Estate, the master developer for Tun Razak Exchange (TRX). The MYR8bn figure is the forecast gross development value on completion and Lend Lease will own 60% of the partnership, with 1MDB RE owning 40%.
The two had signed a master framework agreement last October and have now signed Joint venture agreements and a sale and purchase agreement in the presence of Malaysia’s prime minister, Dato' Sri Mohd Najib Tun Abdul Razak.
TRX is intended to become a global hub for international finance and business. The Lifestyle Quarter will form the social heart of the TRX precinct. It will be a retail-led mixed-use development of over 17 acres comprising a new retail mall, several residential towers and a hotel connected to a multi-layer central park and the largest MRT station in Kuala Lumpur.
CEO of 1MDB Real Estate Dato' Azmar said: "With this Lifestyle Quarter partnership sealed, 1MDB RE will focus on delivering major infrastructure upgrades for TRX and the Imbi area with a view to accelerate the development of TRX to meet strong and tangible demand."
CEO for Lend Lease in Asia, Rod Leaver, said: "We are pleased to complete the negotiations and continue the journey to transform TRX into an iconic destination."
Lend Lease was selected from a pool of international and local bidders to partner with 1MDB RE in the Lifestyle Quarter development in June 2014, following an invitation to participate as a strategic development partner in TRX. TRX will be one of the largest developments in Lend Lease's current portfolio of global projects.