Thursday, September 22, 2011

MAHB privatises RM530m KLIA2 complex to WCT JV

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is privatising the CONSTRUCTION [] and financing of the integrated complex at KLIA2 under a 25-year concession period to Segi Astana Sdn Bhd ' joint venture between WCT BHD [] and MAHB. The construction cost is RM530.3 million.

WCT said on Thursday, Sept 22 it had signed a concession agreement with MAHB and Segi Astana for the privatisation of the construction, development and financing of the complex on a build-operate-transfer model.

WCT said Segi Astana was currently a unit of WCT Land Bhd, which in turn was a wholly-owned subsidiary of WCT.

Segi Astana's authorised share capital will be increased to RM150 million from RM100,000 while its paid up would be RM106.06 million from RM2 when the commercial operation of the complex starts.

Under the agreement, WCT Land will hold 70% or RM74.24 million of Segi Astana's paid-up and MAHB 30% or RM31.818 million.

MAHB granted WCT the sole and exclusive right and authority during the concession period to build and manage the complex and also arrange for any necessary financing.

The complex comprises of a transportation hub for the Express Rail Link, buses, taxis, car rental services and private transport. It would have''a commercial complex consisting of a shopping mall with net lettable area of approximately 350,000 sq ft; and car parks with 6,000 parking bays.

The construction cost of the project is about RM530.3 million to be funded through external borrowings by Segi Astana and the balance by shareholders equity.

'The concession shall be for a period of up to 25 years and may be extended for a further period of 10 years at the option of the concession company.'' The commencement date of the concession is Aug 1,'' 2011.

'Upon the expiry of the concession period, Segi Astana shall transfer the integrated complex including the building, fittings and relevant documents at no cost to MAHB,' WCT said.

WCT said in consideration of MAHB granting the concession to WCT, Segi Astana would pay MAHB a lease rental of RM31.818 million.

The lease rental shall be net off against the subscription price payable by MAHB in respect''of their''30% equity holding in Segi Astana.'' MAHB may also be entitled to royalty payments.

'As KLIA2 will be a dedicated international terminal for low-cost carriers and in view of the expected increase in demand for low cost air travel, the prospects of the concession company are expected to be positive. The revenue from the project will further broaden and strengthen WCT group's future recurring income base,' it said.


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