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Kuala Lumpur, Kuala Lumpur, Malaysia

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BackNov 02, 2017
Type Announcement
Subject OTHERS
Description

MALAYSIA AIRPORTS HOLDINGS BERHAD (Malaysia Airports) - PROPOSED SUBLEASE OF 7.02 ACRES OF VACANT LAND IN SUBANG FORMING PART OF A FREEHOLD LAND (MASTER LAND) TO RHB TRUSTEES BERHAD AS TRUSTEE FOR AXIS REAL ESTATE INVESTMENT TRUST (AXIS-REIT) (PROJECT LAND).

1. INTRODUCTION

MAHB wishes to make announcement pertaining to the sublease of the Project Land (Proposed Sublease) from MAHB to RHB Trustees Berhad, the trustee of Axis Real Estate Investment Trust (Axis-REIT) (Trustee), for Axis-REIT to construct a single-storey manufacturing plant cum office building with a gross built-up area of approximately 178,978.60 square feet (sq ft) (Gross Built-Up Area) inclusive of ancillary buildings and external elements to serve the operation of the manufacturing plant for manufacturing, storage and distribution of aerospace parts, on the Project Land for Upeca Aerotech Sdn Bhd. The sublease is expected to position Subang airport landside development of aerospace related activities, and to enhance the land value and value proposition in Subang (Proposal).

2. DETAILS OF THE PROPOSAL

2.1  Proposed Sublease

Salient details of the Proposed Sublease are as follows:
Project Land area
:
Approximately 7.02 acres ( approx. 305,791.2 sqft )
Land title details
:
Geran 19583, Lot 1210, Mukim Damansara, Daerah Petaling, Negeri Selangor
Lease tenure
:
Initial sublease period of 30 years, with an automatic renewal and/or extension for a further 19 years up to 30 December 2066
Lessor
:
MAHB
Lease consideration
:
RM65.00 per square foot (psf) for the entire lease tenure.
Total net consideration payable is RM19,876,428.00 to be paid in the following manner:
1. RM1,987,642.80 shall be paid to the Trustee’s solicitors as stakeholder upon the execution of the sublease agreement (Deposit)
2. RM17,888,785.20 being the balance of the consideration payable shall be paid to the Trustee’s solicitors to be held as stakeholders within 30 business days from the sublease agreement becomes unconditional.
The Deposit was paid to the Trustee’s solicitors upon signing of the sublease agreement.
3. INTERESTS OF THE DIRECTORS AND/OR MAJOR SHAREHOLDERS OF MAHB AND/OR PERSONS CONNECTED TO THEM

None of the directors and major shareholder of MAHB and/or persons connected to them has any interest, direct or indirect, in the Proposal.

4. DIRECTORS’ STATEMENT

The Board, having considered all aspects of the Proposal and after careful deliberation, is of the opinion that the Proposal is in the best interest of MAHB.


This announcement is dated 2 November 2017.





Announcement Info

Company Name MALAYSIA AIRPORTS HOLDINGS BERHAD
Stock Name AIRPORT
Date Announced 02 Nov 2017
Category General Announcement for PLC
Reference Number GA1-02112017-00002