Developers wanted for project at MAHB’s Subang Aerotech Park

MAHB to conclude deal   in next 2 months, says newly appointed GM


Malaysia Airports Holdings Bhd (MAHB) is opening its doors to developers to present their proposals that could be incorporated into the masterplan to transform its remaining 10.5ha of land in Subang into a comprehensive aerospace hub, to house major aviation players within the next five years.

MAHB’s newly appointed GM Randhill Singh (picture) told The Malaysian Reserve (TMR) that the land is located at one of its clusters called Subang Aerotech Park (SAP), which is part of the Subang Regeneration Initiative development that also includes the Business Aviation Nexus and City Airport projects.

He said MAHB has already received various proposals from local and international industry players that are offering their expertise in build-to-suit facilities at the SAP.

“We have quite a number of players that have shown their interest and we expect to conclude the deal in the next two months,” he said after presenting his paper, “Spurring the Growth of Aerospace Industry in Malaysia to Become Regional Hub”, at the Kuala Lumpur International Aerospace Conference on Tuesday.

He, however, did not disclose the parties that are showing interest in the programme. Currently, the Subang area is the address of various aviation players including Spirit Aerosystems Malaysia Sdn Bhd and a few other helicopter companies.

Randhill said based on MAHB’s experience and observation, the build-to-suit is the best approach in formulating the whole development of SAP.

“This is not the first time the park went to the market. In 2011, some potential parties came in to rent and presented the letter of interest, but it did not work out.

“At that time, we just wanted to lease the land, so they have to build their own facilities.

“However, some of them are small to medium companies and even if they are big, land development is not their core area, so it failed,” Randhill said, adding that one of the companies was Canadian aerospace manufacturer, CAE Inc.

He said under the new model, the company will facilitate and engage property developers, including from overseas, that will rent the land plot and build-to-suit the tenants need in 15 months’ time.

“Those tenants would not only specifically open for manufacturing and maintenance, repair and overhaul services, but also other related sectors.

“We are talking to parties like Senior Plc and other players” 

“After we conclude our deals with the developers in the next two months, we will call the tenants to be in the picture and facilitate the deals between them and the property players,” he added.

Randhill said MAHB also expects to make a few major announcements in the first quarter of next year (1Q19).

“Within five years, we will see that the development in Subang aerospace industry would be mature enough,” he said.

Last March, MAHB announced the construction of Senior Aerospace UPECA’s — a Tier 1 aerospace manufacturer — plant and office as the SAP catalyst.

It will be a build-to-suit project on a 1.66ha land plot, developed by Axis REIT Managers Bhd and expected to be completed by year-end, housing the UPECA manufacturing centre, storage and distribution of aerospace parts.

The agreement was made for a lease of tenure for 49 years, expiring on Dec 30, 2066.

A TMR report stated that the gross development cost of the Subang Aerotech Park development was RM400 million.

According to Randhill, the Subang Regeneration Initiative masterplan would involve up to 430.18ha of land, including its business aviation and airport activities.

  • Para (12) has been edited and replaced based on the feedback from the related stakeholders for clarity and correctness.