KL TOWERS AHEAD

SKY-HIGH SHOWPIECE

The Exchange TRX, centrepiece of Malaysia’s new master-planned financial district, is pioneering high sustainability standards, connectivity, and placemaking design

BY AL GERARD DE LA CRUZ

Malaysia is a nation of cities—and cities within cities. There’s Putrajaya, the administrative capital, built from scratch on plantations. There’s Cyberjaya, the country’s answer to Silicon Valley. There’s also Kuala Lumpur City Centre (KLCC), home to the world’s tallest twin towers.

And then there’s Tun Razak Exchange (TRX), a master-planned financial district, benchmarked after Marina Bay in neighbouring Singapore, the International Commerce Centre in Hong Kong, and Canary Wharf in London. Home to the 492-metre high Exchange 106 building, the MYR40-billion (USD9 billion) transit-oriented development is transforming Kuala Lumpur’s skyline.

At the epicentre of the 70-acre district is The Exchange TRX, a lifestyle precinct anchored by a 2.2 million sq ft lifestyle retail development with a rooftop park. The MYR9-billion integrated development, the largest in Asia by Australian multinational property and infrastructure group Lendlease, also encompasses residential towers in three separate plots, a campus-style office block, and an array of cultural and leisure offerings. The project, previously known as the Lifestyle Quarter, will also feature the first Kimpton Hotel in Malaysia.

TRX RESIDENCES HAS 90,000 SQ FT OF FACILITIES, INCLUDING THE CONSERVATORY AT LEVEL 29, WHICH HAS A VIEW TO THE ROYAL SELANGOR GOLF CLUB BELOW

Lendlease took interest in the 17-acre site for its direct connection to TRX’s namesake MRT interchange station, the largest and deepest in Malaysia, linking commuters to almost 70 stations across Klang Valley. Straddling Jalan Tun Razak and Jalan Sultan Ismail, the site also sits on a subterrranean loop tunnel that allows motorists to bypass surface roads and emerge on important thoroughfares like SMART (Stormwater Management and Road Tunnel), MEX (Maju Expressway), SPE (SetiawangsaPantai Expressway), and DUKE 3 (Duta-Ulu Kelang Expressway).

“This city-defining development brings together best practices in holistic place management for the deliberate creation of inclusive, connected and collaborative communities,” says Stuart Mendel, managing director and country head for Lendlease in Malaysia.

The Exchange TRX revitalises a neglected portion of Kuala Lumpur’s Imbi and Pudu neighbourhoods. A residential quarter for civil servants in the 1920s, the area also known Pak Luk Kan—translated as “Land of the 106 Bungalows”—developed ad hoc over the decades, giving rise to the congested Pasar Rakyat marketplace and bus terminal.

Taking the lessons of its many urban regeneration projects worldwide, which include Barangaroo South in Sydney and the International Quarter in London, Lendlease gave the area an infusion of vitality.

Following the opening of the TRX MRT station in 2017, Lendlease formally launched The Exchange TRX as a 60:40 joint venture with master developer TRX City Sdn Bhd (TRXC) under the Ministry of Finance in 2019.

“Placemaking is our capability that sets us apart,” says Mendel. “We have the expertise to reinvent underutilised areas into thriving places that connect people through work, leisure and living. To us, urban regeneration is about future-thinking and building a place that does not just serve the purpose of today, but one that is reliable and inventive for generations to come.”

The landmark development is not only premised on superior transport connectivity but also walkability. Connecting The Exchange TRX to the Bukit Bintang shopping belt and KLCC is a pedestrian boulevard, essentially lining up one showpiece retail destination after another.

It was imperative for Lendlease to differentiate the retail component of The Exchange TRX. With a net leasable area of 1.3 million sq ft, the four-level retail development has 400 experience stores, plus unique experiential dining concepts and retail firsts in Malaysia. They include Japanese department store Seibu and movie house chain Golden Screen Cinema.

“As a global property developer, Lendlease has relationships with retailers from all around the world, and we are excited to introduce some key flagship experience stores at The Exchange TRX,” says Mitchell Wilson, project director of The Exchange TRX at Lendlease Malaysia.

With The Exchange TRX mall, Lendlease introduces a Melburnian retail experience to Kuala Lumpur: the laneway. The 300-metre Market Lane in the development is dedicated to up-and-coming local entrepreneurs, artists and musicians.

URBAN REGENERATION IS ABOUT FUTURE-THINKING AND BUILDING A PLACE THAT DOES NOT JUST SERVE THE PURPOSE OF TODAY, BUT ONE THAT IS RELIABLE AND INVENTIVE FOR GENERATIONS TO COME

THE EXCHANGE TRX IS SITUATED ON A VERY IMPORTANT TRANSPORT HUB IN KUALA LUMPUR, ABOVE MALAYSIA’S LARGEST MRT INTERCHANGE STATION AND A LOOP TUNNEL SYSTEM THAT DIVERTS TRAFFIC UNDERGROUND

The park atop the retail development is—literally—an elevated take on retail landscaping, inspired by the High Line in New York and Namba Park in Osaka. Carpeting 10 acres of the retail development’s rooftop, it is the first major park to be developed in Kuala Lumpur in over 20 years. Landscapers sourced 150,000 plants across 150 species and interspersed them with walking pathways, recreational areas, cultural spaces, and alfresco dining spots.

The park serves to maximise water retention from storm events and reduce the effects of urban heat. The entire precinct itself sits on a raised platform, giving the site a 1.7-metre buffer against flooding especially during the monsoon season. Lendlease submitted the location to climate risk analysis and flood modelling, part of the company’s aim to future-proof the development. “Our sustainability vision is about creating great places around the world that do not ‘borrow from the future’ but instead ‘pay back’ some of the social, economic and environmental impacts that exist across our urban landscapes,” says Mendel.

The six residential towers at the precinct, collectively known as TRX Residences, pass on the environmental boon to residents in the form of lower utility expenses: up to 25% and 47% savings in energy and water consumption, respectively. The buildings also run rooftop photovoltaic cells, bringing solar power to some common areas.

Consultants on TRX Residences were briefed on the Global Apartments DNA document containing Lendlease’s guidelines for highrise living. “In any city we target, we need to be able to operate in a way that complies with our robust safety and sustainability standards,” says Mendel.

THE EXCHANGE TRX HOUSES MANY EXPERIENTIAL AND PRIVATE DINING CONCEPTS, WITH FIVE MAIN ZONES FOR CULINARY ADVENTURES RANGING FROM SCENIC ALFRESCO AREAS TO SHOWCASES FOR MALAYSIAN CUISINE

Construction of the first two blocks, the 53-floor Tower A and 57-floor Tower B, is progressing well, reports Eric Chan, project director of TRX Residences in Lendlease Malaysia. Breaking new ground, Lendlease has equipped construction workers with the 118-ton Lubeca Jumpform System, which can complete a level of lift and stair core every five days. “The lift and stair core form the backbone of the project, providing essential vertical transportation services and safety systems, as well as structural stability for the towers,” says Chan. “The building envelope of the glass curtain wall with double glazing and low-E glass can quickly follow suit, creating a safer working environment that is protected from weather conditions.”

Lendlease also used the Stairmaster system, enabling precise installation of evenly laid stairs. This allows contractors to move up and down the high-rises without relying entirely on passenger hoists or installation of makeshift staircases. Imbuing universal appeal into the homes, the company also built prototypes of the twobedroom design for experts and user groups, including persons with disabilities, to critique.

“These innovations coupled with an unrelenting focus on safety allow us to construct the project expeditiously with a clear emphasis on quality,” says Chan. TRX Residences is both a product of its time and a futurelooking project, with a mechanical ventilation system and other design contingencies against interunit contamination and disease. For the same reasons, Lendlease is keeping the density of the residential buildings mostly to 10 units per floor, for a total of over 2,000 homes in one- to threebedroom configurations across the three plots. “The Exchange TRX was designed and planned before Covid, built during Covid, and scheduled to open when Covid is likely to be endemic,” says Chan. “Our philosophy of building for the long term is especially relevant to a post-Covid-19 world, as we all adapt to the ‘new normal’ of living and heightened requirements for safety and health standards.”

Lendlease has been an influential presence in Malaysia for over 35 years, with a portfolio that includes the likes of Petronas Twin Towers. In February, the company acquired an additional 1.2-acre plot of land within TRX.

“Governments around the world are striving to proactively manage this megatrend of urbanisation,” says Mendel. “We aim to continue to seek out opportunities in Malaysia and work closely with the government and other investors to help create better places, ultimately contributing towards Malaysia’s growth and development.”

DIGITAL FRONTIERS

Through The Exchange TRX, Australian megadeveloper Lendlease is bridging the gap of digital innovation in the Malaysian retail scene.

“Digital transformation has emerged as a top trend as we have seen an unprecedented shift towards retail digitisation and e-commerce accelerated by the pandemic,” says Mitchell Wilson, project director for The Exchange TRX in Lendlease Malaysia. “Yet, for most retailers, brickand-mortar stores remain an essential part of their brand engagement strategy and shopping experience.”

Lendlease enjoins tenants to integrate bricks and mortar into e-retailing platforms; introduce cashless payment systems; offer virtual fitting rooms via augmented reality (AR); and design engaging digital shopfronts.

The Exchange TRX app functions as a digital concierge, capable of booking services running the gamut from baby strollers to wheelchairs. A one-stop hub for customer needs, the app can manage restaurant bookings; home deliveries; parking reservations; and many more. “Data gathered from the apps will be analysed through an analytics platform so we will be able to improve our offerings, making our app and our asset relevant over time,” says Wilson.

“A similar app is available for the development’s residential component TRX Residences,” adds Eric Chan, project director for TRX Residences in Lendlease Malaysia.

CONSTRUCTION OF THE SITE IS PROGRESSING WELL THANKS TO SYSTEMS THAT EXPEDITE TASKS AND ENSURE WORKERS’ SAFETY

Setting the pace

A marathon runner and former military officer, William Thomas, the director of the Economist Corporate Network in Southeast Asia, is thinking strategically about the long-term future of the region’s cities

BY BILL BREDESEN

SINGAPORE, THOMAS SAYS, IS BEST PLACED AMONG ASIA’S CITIES TO RIDE OUT THE ECONOMIC CHALLENGES THAT LIE AHEAD

We’re still figuring out what the nature of work is going to look like here in Asia. It’ll affect the nature of residential development because more people will be looking for home offices. It’ll impact how we design our cities

As director of The Economist Corporate Network in Southeast Asia, William Thomas brings together C-suite executives from across the region for exclusive networking sessions and expert seminars that look at how macroeconomic trends and geopolitics could impact business strategy.

Thomas, who is based in Singapore, is a former U.S. military officer, university professor, HR consultant, and small business owner—as well as a competitive runner who, after taking up the sport relatively late in life, at 42, has completed the so-called Marathon Grand Slam, crossing the finish line on all seven continents plus the North Pole.

The Economist Corporate Network’s executive-level seminars, and the Regional Leaders Programme that Thomas ushered in two years ago, are designed to help business leaders better understand a range of complex issues, from cyber defence to supply chains, and guide them in their decision-making.

“Being a top leader in a company is like being the captain of a ship,” Thomas says. “You can’t talk about everything with the crew. Only other ship captains are going to understand what you’re going through. This is a chance for all of those captains to come together and share ideas and insights behind closed doors.”

THOMAS IS A BIG ADMIRER OF THE ECONOMIST INTELLIGENCE UNIT’S GLOBAL LIVEABILITY INDEX, WHICH IS CURRENTLY TOPPED BY AUCKLAND IN NEW ZEALAND

Sustainability is a particularly in-demand topic among corporate leaders these days, Thomas says. Environmental, social and governance issues (“ESG”) are increasingly viewed not only as “nice to have,” he says, but as “critical gates or filters in your strategy that every decision has to go through.”

As an example of ESG’s upside potential for a business, he pointed to a Malaysian real estate developer—a member of The Economist Corporate Network—that recently built a new shopping mall that included its own sustainable water supply, as well as solar panels that produced so much reliable energy the owners were able to sell excess power back to the local grid. “These factors allowed them to charge higher rent to their tenants than if they were dependent on the local system with occasional brownouts,” Thomas says.

The developer also worked with the government to integrate public transport and create a dedicated bicycle lane to the mall. That allowed the owners to commit less space to parking, which would have been a zero-revenue generator. The project’s “green” elements ultimately drove profitability. “What I think will make a real difference for companies is when they stop seeing sustainability as a cost—and start seeing it as a competitive advantage,” Thomas says.

I saw a recent story you posted online linking to the Economist Intelligence Unit’s Global Liveability Index. I know they’re a sister organization under the Economist umbrella. What can businesses glean from that index?

The biggest value, if it’s used properly, is it can help you see the emerging expectations that people have when they’re living in a city, choosing where to go, or choosing where to set up their business. Just looking at the numbers or rankings doesn’t tell you very much. You need to look into the report to see why a city rose or fell. I think it also helps to look at the index over some time and not just one year—because that’s just a snapshot. To see the emerging trends, go back a few years and see what changes are happening over time. Where is consistently rising—and why are they rising? That gives you a sense of what people are looking for in a liveable city. And that’s where I think it can be really valuable for developers and urban planners to get a sense of where they want to take their city in the next five or 10 years. How might you use it to advise one of your clients?

It would depend on the client. For example, with a tech company, we might take this year’s index and look at the past few years and see what role tech has played in bringing a company up in the index. What is it that’s so valuable? Is it simply a reliable infrastructure that supports e-commerce or

work from home? Is it 5G? Internet of things? For a logistics company, on the other hand, we might look at traffic patterns or population dispersal from the city centre to the suburbs.

How has Covid-19 changed the way people and businesses think about urban development, especially in Asia?

One of the biggest impacts I’m going to be watching for is the changing nature of work. That, I think, has more impact in this region than other parts of the world. If you look at North America or Western Europe, the idea of flexible work arrangements and “work from home” have existed for some time. Maybe not on a huge scale, but they’ve been there. Compare that to Hong Kong or Singapore, where there’s a long tradition of getting to the office before the boss arrives and leaving after the boss leaves because you have to be seen. We’re still figuring out what the nature of work is going to look like here in Asia. That’s going to drive individual property developments in terms of commercial spaces. It’ll affect the nature of residential development because more people will be looking for home offices. It’ll impact how we design our cities. Do we have a commercial district? How do we design mass transit? Where are people going to live relative to where they work when that’s not as much of an issue anymore?

From a macroeconomic perspective, what trends do you see influencing development in this region in the next three to five years? We need to watch government responses to inflationary pressures. Inflation popped in 2021 as demand started to open up again. It’s very uneven in different markets. Also, there are a lot of supply pressures—supply chains are blocked and logistics are still very expensive right now. We

forecast that it’s going to come down in the next couple of years, back down to levels that everybody is used to and comfortable with.

But governments are under pressure to respond now. The challenge is to start raising interest rates. That will cool off the economy, but we’re still in an economic recovery. So cooling off the economy may not be a good thing. In terms of development, this has a couple of different impacts. On the buyer side, as interest rates go up, it impacts demand for new property developments.

Also, governments took on a lot of debt in response to Covid. And servicing that debt is manageable now because interest rates are so low. When interest rates go back up, the government is going to have to pay more to service that debt. The money has to come from somewhere else. Fiscal changes, whether that’s taxes going up or discretionary spending going down, then have an impact on infrastructure development and broader urban planning issues. Things are picking up again. We need to prepare for a slowdown because it seems like governments are going to respond to this pressure sooner than later rather than waiting it out.

What do you see in this regard in Singapore and Malaysia?

I think we’ll see it more so in Malaysia. Singapore is a little more content to ride things out. I also think debt is not an issue in Singapore because they didn’t take on debt to pay for Covid. They pumped a lot of money into the system but it came out of their “rainy day” fund. They didn’t take on excess debt to do this. In places like Malaysia, Vietnam, the Philippines, and Thailand, I think you can expect to see more of an impact if interest rates do start rising, as we think they’re likely to.

THE INTRODUCTION OF CYCLE NETWORKS BY DEVELOPERS AND CITY AUTHORITIES HAS ENHANCED LIVEABILITY IN URBAN AREAS AROUND ASIA

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HOME SWEET OFFICE

As the Philippines warms to new ways of living and working, real estate company SM Development Corporation (SMDC) introduces enterprising residential and commercial concepts in its new township development

Some 85% of Filipino office workers were forcefully shifted to a work-from-home (WFH) arrangement since the start of the pandemic, according to a study by SEEK Asia, Boston Consulting Group, and The Network. Meanwhile, stringent lockdown measures have forced millions of Filipinos to stay close to home, foregoing leisure and entertainment activities and only going out when it is necessary, and rethink travel plans entirely. Naturally well-lit and endowed with sufficient working spaces, the units are complemented by the buildings’ topnotch shared facilities, including meeting rooms and co-working spaces. Residents have access to fitness and wellness amenities, as well as a commercial area. The towers also emanate a sense of arrival, boasting world-class lobbies designed with gold accents and premium finishes by Australia-based firm Plus Architecture.

In response to these shifts in lifestyle, real estate giant SM Development Corporation (SMDC) conceptualised a project fit for the times: Gold RESO (Residential-Offices).

The development has all the comforts of a residential address but with features and amenities fit for a business from home. Homes at Gold RESO have the configurations and fittings of a proper office.

The Gold RESO towers are part of Gold City, an 11.6-hectare master-planned community being built across from the Ninoy Aquino International Airport Terminal (NAIA) in the Philippine capital.

The flexibility offered by Gold RESO allows business owners to convert office rent expenses into a freehold real asset. With 100% back-up power and fast internet connection, Gold RESO assures its occupants of smooth, continuous business operations. Gold RESO residents not only enjoy the convenience of being located in the bustling, progressive city of Parañaque but also the many opportunities for living, leisure and employment right within Gold City. SMDC’s pioneering township is a multifaceted project brought together by world-renowned architects and interior designers.

Gold City is close to the Mega Manila Subway and major thoroughfares such as the NAIAX and C5 extension, which in turn lead to Metro Manila’s many dynamic central business districts, tourist attractions, shopping areas, dining spots, and entertainment destinations. The interconnectivity of the developments and fluidity of the environs compel residents, workers, and visitors in Gold City to safely take advantage of urban comforts in one place.

Due to Gold City’s proximity to the airport, residents in the township benefit from an exclusive shuttle service to the NAIA terminals. This allows residents to just leave their cars at home and simply jet off to their destination.

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Apart from Gold RESO, those looking for dedicated homes are spoilt for choice in Gold Residences. The eight-tower project in Gold City contain homes around hotel-like lobbies and resort-style amenities, with efficient levels of property management, maintenance, and security.

Known for its work with luxury hotels, Singapore-based design firm Michael Fiebriech Design (MFD) adorned Gold Residences with dramatic installations and visually stunning elements. Living up to its name, Gold Residences is layered with black and gold tones that result in striking, high-contrast interiors.

Hong Kong-based architecture, urban design and masterplanning firm Adrian L. Norman Limited (ALN) meanwhile hatched the project’s lush landscape design. Manicured gardens with golden design elements extend a refreshing, relaxing environment to residents.

The residential phases at Gold City boast amenities built to luxurious standards. These facilities include a gym, yoga studio, function rooms, communal work lounges, adult and kiddie swimming pools, and playgrounds. A walkable community, Gold City also comes with jogging paths, a welllandscaped central parks, and enclave gardens, offering open spaces and pockets of serenity for residents, visitors, and workers.

Such visionary concepts and seamless synergy with collaborators have earned industry accolades for SMDC, hailed Best Developer at the most recent PropertyGuru Philippines Property Awards. Gold City and Gold Residences clinched many wins, including Best Mixed Use Development, Best Mid Rise Condo Development (Philippines), Best Lifestyle Development, Best High End Condo Development (Metro Manila), and Best Landscape Architectural Design.

With great style, functionality and profitability, Gold City symbolises a golden opportunity for property seekers, investors, and entrepreneurs alike.