KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) and Singapore-listed Boustead Projects Ltd will jointly develop an aerospace and high-tech park within the Subang Aerotech Park in Selangor.
MAHB said wholly-owned subsidiary Malaysia Airports (Subang) Sdn Bhd today inked the joint-venture (JV) agreement with Boustead Projects’ unit BP Aerotech (Subang) Sdn Bhd, whereby they would have 30% and 70% interest, respectively, in the park to be leased to companies in the aerospace industry.
Under the deal, a JV company to be incorporated would be given the rights to sublease up to 14.03 hectares within the proximity of the Sultan Abdul Aziz Shah Airport, MAHB said in a filing with Bursa Malaysia today.
The JV firm would appoint BP Aerotech or its business unit(s) to carry out the design, construction, project management, development management and asset management or property management for the development, the airport operator said.
MAHB said the strategic collaboration with Boustead Projects was in line with its vision of long-term growth in the aviation and aerospace industry.
It also serves as the catalyst of the Subang Regeneration Initiative.
Subang Airport, it noted, had been identified as part of national priorities for aerospace-related development by the National Aerospace Blueprint 2015-2030.
The project will be funded through a combination of internally generated funds and bank borrowings.
“The JV agreement is not expected to have any material impact on the MAHB group’s earnings per share or net tangible assets per share for the financial year ending Dec 31, 2019,” it said.