This article first appeared in The Edge Malaysia Weekly on February 24, 2025 - March 2, 2025

MONASH University Malaysia Sdn Bhd, which operates Monash University’s campus in Sunway City, is said to be in the final stages of negotiations with TRX City Sdn Bhd (TRX City) to lease a purpose-built campus within a 15-acre plot at Tun Razak Exchange (TRX) in Kuala Lumpur, according to sources.

The Kuala Lumpur facility will be university’s city campus, its second campus in the country. Its first, in Sunway City, was set up in 1998. It is unclear if Monash is taking the entire 15-acre plot.

“TRX City will be building the campus and leasing it to Monash,” a source says. 

The Edge is given to understand that the 70-acre TRX is divided into two parcels.The bigger 55-acre parcel houses buildings such as Exchange 106, The Exchange TRX mall, TRX Residences, Menara Prudential, Menara AFFIN, as well as a 10-acre park. The second parcel, on which the potential Monash plot sits, is located in the southern part near the Kampung Pandan roundabout (see map).

TRX City is the master developer of TRX and is wholly owned by the Minister of Finance (Inc).

A source familiar with the deal says talks between both parties have been going on for over a year. The source adds that such lease agreements are usually for a term of 15 to 20 years, with an option to extend for another term of the same duration.

“The new Monash campus at TRX will be an interesting development for the area. Having more than one campus, or a city campus, is not something new for Monash. Just within Melbourne in Australia alone, Monash has about five or six campuses,” a market observer says.

Monash did not comment on the TRX Campus when contacted, but said it had extended its lease with Sunway.

“Monash University Malaysia has experienced strong and sustained growth over a significant period, and is expected to continue to do so in the foreseeable future. 

“We continuously assess our infrastructure to ensure it supports our teaching and learning and research activities, including exploring potential for future development ...

“Monash University has extended its lease with Sunway, reinforcing our commitment to providing a stable and enriching environment for our community.”

The Edge understands that TRX City is in the process of securing a loan from financial institutions to develop the land.

Monash University has been in Malaysia for over two decades. In 1998, it became the first foreign university to establish a branch campus in the country. This was through a joint venture with Sunway Bhd (KL:SUNWAY) via Sunway Education Group, with Monash University holding a 45% stake. However, it has been the sole owner of Monash University Malaysia since 2020.

According to Monash’s 2020 annual report, it acquired Sunway’s 55% stake for A$108.113 million through a mutual agreement.

The TRX development was launched as the International Finance Centre in February 2024. The centrepiece of the development is Exchange 106, which comprises a 92-storey tower and a five-storey annexe that includes a retail floor.

It was the first project to be completed in TRX. The 2.5 million sq ft of net lettable area is currently 57% taken up. Ant International, Huawei (regional office), Accenture, Agoda and Principal Asset Management Bhd are among its key tenants.

Exchange 106’s developer Mulia Property Development Sdn Bhd expects occupancy at the skyscraper to reach 70% by end-2025. According to Knight Frank Malaysia’s real estate report for the first half of 2024, the asking monthly gross rent for the tower is the highest in the country for office space, at an estimated RM10 to RM15 psf.

The Edge reported last December that TRX City was looking to build another office tower in TRX, with PricewaterhouseCoopers Malaysia Holdings Sdn Bhd (PwC Malaysia) as the anchor tenant, taking up 200,000 sq ft. TRX City subsequently confirmed the report, saying in a statement that it had signed a binding commitment with PwC Malaysia, which intends to move its headquarters to the new tower.

Situated in the financial quarter next to Exchange 106, the tower is slated to open in 2029. The proposed project has raised eyebrows given the ample vacant office space within TRX itself and in Greater Kuala Lumpur.

This will be TRX City’s second office block there, the first being Menara Prudential.  

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