Tuesday, May 19, 2009

Malaysia Airports in talks with 5 parties

MALAYSIA Airports Holdings Bhd (MAHB) says it is in talks with as many as five parties to set up base at the Malaysian International Aerospace Centre (MIAC) in Subang, Selangor, but declined to name them.

The airport operator, which manages the centre, has already put in a request to the Transport Ministry to acquire an additional 140ha nearby to accommodate the potential tenants.

That is because the 480ha currently designated for development under MIAC is almost fully taken up by investors.

MAHB senior general manager of corporate planning, Datuk Mahat Samah, said only pockets of land, totalling some 6ha are left.

"Leases have been signed (with various tenants to occupy and use the current land at MIAC), it's just a matter of the tenants deciding when they want to come in," he told Business Times in an interview.

One such tenant is Universiti Kuala Lumpur, which plans to locate its Malaysian Institute of Aviation Technology (MIAT) campus there.

MIAT was supposed to have started construction last year, but its plot at MIAC was still left vacant.

"We have allocated 20ha for them. We are just waiting for them to start construction," said Mahat.

Mahat also said that with the signing of a 60-year land lease with the government for MIAC, MAHB will now be able to offer longer leases to its tenants.

Prior to this, most tenants were given three-year leases with the possible extension for up to three more years.

MIAC is now offering 10-year leases with an option for another 10 years or its combination up to a maximum of 30 years to new tenants.

Mahat said existing tenants would be up for a review upon the expiry of their current lease contracts.

The terms of the leases depend on the nature of their business as well as the infrastructure that is in use.

"Of course when you use infrastructure built by us (MAHB), you pay more. But if you build your own infrastructure, you can actually offset it against your lease amount," Mahat said.

MAHB rakes in some RM20 million per year in leasing income from MIAC.

Source : BusinessTimesOnline
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