Friday, 22 June 2018 | MYT 12:00 AM
Govt may own skyscraper if Indonesian firm can’t live up to bargain
PUTRAJAYA: The Government may gain complete ownership of the Exchange 106 tower in the Tun Razak Exchange (TRX) development if Indonesia’s Mulia Group fails to fulfil its obligations under a compensation agree-ment.
According to Finance Minister Lim Guan Eng, the Mulia Group was to start repaying the amount invested by the Government as capital when the project nears completion.
Currently, the construction of the tower, formerly known as the Signature Tower, is 90% completed.
Meanwhile, the development of the first phase of TRX is at 80% completion.
“If the Mulia Group does not repay the amount that we invested, I think there are clauses in the agreement (stating that) they will have to let us own the entire building.
“According to the agreement, they have to pay within a certain period and give us an additional RM100mil. If they pay us a year later, they will give RM200mil. If they pay after that, the whole building will belong to the Finance Ministry.
“I think we should look at the agreement. We are bound by the agreement,” Lim told reporters at a special media briefing on TRX yesterday.
The Exchange 106 tower, which is set to become Malaysia’s tallest skyscraper upon completion, is currently jointly developed by the Finance Ministry’s unit, MKD Signature Sdn Bhd and Mulia Group.
MKD Signature owns 51% of the joint-venture entity while Mulia Property Development of the Mulia Group holds the remaining 49%. The 492m project is slated for completion by the end of this year.
Since the May 9 general election, the new Pakatan Harapan government is reviewing all mega projects undertaken by the previous government.
The 70-acre TRX, which includes the Exchange 106 tower, is one of them.