TSR Capital in land swap with govt

Property News/ 7 February 2014 Leave a comment

Property developer and builder TSR Capital Bhd, together with Lembaga Tabung Angkatan Tentera (LTAT) and bumiputera-owned Pembinaan Bukit Timah Sdn Bhd (PBT), will redevelop the existing 1,007-acre (407.52ha) air force base in Butterworth, Penang into an integrated mixed-use project with a potential gross development value (GDV) of more than RM10 billion.

TSR said in its announcement to Bursa Malaysia yesterday that it had received the government’s approval in principle to set up a joint-venture (JV) company to enter into negotiations with the latter to redevelop the Royal Malaysian Air Force (RMAF) base as part of a proposed land-swap deal with the federal government.

The three companies will also develop a new RM3 billion air force base for the RMAF near mainland Penang. Under the partnership, TSR Capital will have a 51% stake in the JV, while LTAT and PBT will hold the remaining 30% and 19% respectively.

“The government will be able to participate in the redevelopment of the government land through LTAT’s equity interest in the JV company,” said TSR Capital in the filing.

Under the deal, the JV will undertake to relocate the existing air force base and reconstruct it on land to be identified. “The JV company will [also] design, build and finance the development and construction of the new air force base. The government will pay the JV company for the new air force base through a land swap at current market value of government land.

“The government land includes, but is not limited to, a tract measuring 1,007 acres where the existing RMAF Butterworth is situated,” it added.

According to TSR Capital group accountant Ng Kim Keong, the location of the new air force base will be “not far from mainland Penang” and the JV company will serve as the master developer of the redevelopment of the government land.

Ng told The Edge Financial Daily yesterday that negotiations on the deal are expected to be finalised in a year. “All this is subject to approval by all parties. We need to get approvals on the cost, design and so on before we can start construction,” he said, adding that construction of the new air force base will take about four years.

On the land where the existing air force base is located, Ng said the proposed mixed-use development is estimated to have a GDV of more than RM10 billion, and that project will only start after the new air force base has been completed and the existing RMAF Butterworth base, which remains operational for now, is relocated.

On the reasons for the relocation, Ng said the existing air force base is near residential areas and the RMAF equipment as well as buildings are not up to date and need fixing.

The company added that it will provide further details after definitive and conclusive terms have been agreed upon and a formal agreement has been entered into by the parties.

Source: The Edge Property

  1. Chocolate
    February 7th, 2014 at 12:24 | #1

    Very good news to the surrounding projects which some always complain about the noise.

    Another RM50K increase!!!

  2. TuaKong
    February 7th, 2014 at 12:44 | #2

    Good news for Penangites indeed. More decent places for them to live in over the mainland, which translates into more affordable housing…..:)

    February 7th, 2014 at 14:27 | #3

    Well done. Many highrise building will come up in Butterworth next few years.

  4. Nstar
    February 7th, 2014 at 15:10 | #4

    It’s at the very infant stage , the JVC need to relocate/rebuild the air base first , which might take 4 to 5 years then only will start on this project.

  5. Nstar
    February 7th, 2014 at 15:18 | #5

    Good thing is the height restriction on surrounding area will be eliminated by this relocation, Teluk Air Tawar , Bagan Ajam , Raja Uda , Sungai Puyu & Bagan Lalang area will be benefited by this , more high-rise in future.
    The beach is sandy white at the RAAF hostel area , that’s superb location for residential & leisure zone, hope they don’t waste this excellent spot , the view is fantastic here !!!

  6. Penang Boy
    February 7th, 2014 at 16:29 | #6

    One more reason for State gov to build the 3rd link.

  7. Micheal
    February 8th, 2014 at 21:48 | #7

    Ya, its time to develop these area…..

  8. Ah Dog
    February 10th, 2014 at 15:50 | #8

    Those high rise condominium can be built on this piece of land for some sea view. Those Butterworth residence don’t need to suffer the noise from jet fighter anymore after suffered for more than few decades. Good move.

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