KUALA LUMPUR: WCT Bhd has signed an agreement with Malaysia Airports Holdings Bhd (MAHB) and Segi Astana Sdn Bhd to privatise the construction, development and financing of the integrated complex at KL International Airport 2. This is on a build-operate-transfer basis for a concession period of 25 years, with an option to extend it a further 10 years.
The construction and property development firm announced to Bursa Malaysia on Thursday, Sept 22 that MAHB has granted WCT the sole and exclusive right and authority to design, construct, manage, operate and maintain the integrated complex as well as arrange for any necessary financing that may be required in relation to the project.
WCT's wholly-owned unit WCT Land Sdn Bhd (WCTL) has concurrently entered into a shareholders' agreement with MAHB and Segi Astana Sdn Bhd to govern the relationship of WCTL and MAHB with regards to the project as well as their relationship as shareholders of Segi Astana.
Under the agreement, WCTL will hold 70% or RM74.24 million of Segi Astana's paid-up capital and MAHB 30% or RM31.82 million.
The integrated complex includes a transport hub for the Express Rail Link (ERL), buses, taxis, car rental services and private transport, a commercial complex consisting of a shopping mall with a net lettable area of some 350,000 sq ft and car parks with around 6,000 parking bays. The construction cost, which is estimated at RM530.3 million, will be funded through a combination of external borrowings by Segi Astana and shareholders' equity. It will be transferred at no cost to MAHB when the concession expires.
WCT said in consideration of MAHB granting the concession to WCT, Segi Astana will pay MAHB rental of RM31.82 million.
The lease will be netted-off against the subscription price payable by MAHB in respect of its 30% equity holding in Segi Astana. MAHB may also be entitled to royalty payments.
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