Malaysia Airports Holding Berhad said it has multiple agreements with the Government of Malaysia for the development and operations of Kuala Lumpur International Airport including Land Lease and Land development agreement at the KLIA zone
The airport operator has the Operating Agreement between GoM, MAHB, and Malaysia Airports (Sepang) Sdn Bhd which gives it a management contract of the airport from 2009 for a period of 25 years until 2034; and a Lease Agreement between the Federal Lands Commissioner and from 2009 for a period of 25 years until 2034.
Accordingly, it said consistent with other airports in developed countries, MAHB established a wholly owned subsidiary, KLIA Aeropolis Sdn Bhd to focus on attracting and developing economic activities within the vicinity of KLIA. Based on engagements with various potential investors and businesses, the company said it acknowledged the challenges faced by these investors and businesses in obtaining a palatable return on investment due to the short remaining tenure of the land lease.
Since then, it had engaged with GoM to structure better terms to increase both domestic as well as foreign direct investments. This has since been approved by the Government on the principal terms of the Land Lease Agreement and Development Agreement. Subject to the finalisation of the agreements where a Development Agreement between KASB and the GoM to formalise the acceptance of the grant of development rights by KASB in respect of forty-one lots of land measuring 8,537.3137 acres in total for a period of ninety-nine years commencing where KASB has been given the right to plan, design, develop and construct the KLIA Aeropolis Lands.
Meanwhile, the LLA between KASB and FLC formalised KASB’s acceptance of a ninety-nine-year lease of the KLIA Aeropolis Lands.
The Supplemental Agreement between MA Sepang and the GoM is intended to vary the terms and conditions of the OA to carve out the KLIA Aeropolis Lands from the OA for the development of KLIA Aeropolis. Meanwhile, the supplemental agreement between MA Sepang and FLC is intended to vary the terms and conditions of the LA to carve out the KLIA Aeropolis Lands from the LA for the development of KLIA Aeropolis.
Therefore, consequent to the above, MA Sepang will retain the remaining forty-seven lots of land measuring approximately 23,111.04 acres for the continued purposes of KLIA airport operations, to be held under the OA and LA.
The execution of the agreements as well as the development of KLIA Aeropolis, is expected to contribute positively to the future earnings of MAHB Group.
