(June 20): Malaysia’s newest financial district is taking shape and drawing investment after spending years mired in controversy for its links to an embattled state investment fund.

The Tun Razak Exchange has reached critical mass for its initial phase after HSBC Holdings Plc this month said it will invest US$250 million ($346 million) to build its local headquarters in the development, according to TRX City Sdn. Chief Executive Officer Azmar Talib.

The 70-acre site in downtown Kuala Lumpur has at times been the focus of domestic furor surrounding 1Malaysia Development Bhd., a government fund which has spurred criminal and regulatory investigations around the world. Named after Prime Minister Najib Razak’s father and the country’s second premier, the development has a projected sales value of 40 billion ringgit ($12.9 billion).

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