Malaysian air force bases eyed for multi-billion ringgit property projects
Well-connected property developers are eyeing strategic Royal Malaysian Air Force (RMAF) bases across the country for potential multi-billion ringgit real estate projects, The Edge Malaysia business and investment weekly, Edge Weekly, reported in its latest September 8 to 14 issue.
The spotlight on RMAF bases followed a scarcity of prime land in the country, prompting developers' to look into government-owned tracts, according to the Edge Weekly.
"RMAF bases are a favourite because they sit on strategically-located tracts. But these deals have attracted a lot of criticism, especially for their lack of transparency.
"Critics are demanding to know whether the federal government’s move to sell the land was driven by military or security motives, or purely commercial in nature," the business and investment weekly said.
The Edge Weekly reported that over the last three years, RMAF bases in Sungai Besi, Kuala Lumpur, and Butterworth on mainland Penang had been traded for their commercial value for planned real estate projects.
Another RMAF base in Kinrara, Selangor could be next, the Edge Weekly reported, quoting a source familiar with the matter.
According to the Edge Weekly, besides the RMAF bases in Sungai Besi, Butterworth and Kinrara, the air force has 11 other bases across the country.
The 11 hubs are located in Alor Star in Kedah, Bukit Ibam and Kuantan in Pahang, Jugra and Subang in Selangor, Gong Kedak in Kelantan, Ipoh in Perak, Kuching and Kota Samarahan in Sarawak, Bukit Lunchu in Johor and Labuan.
"This means opportunities for well-connected developers to target them for development," the Edge Weekly said.
According to the business and investment weekly, the 198ha Sungai Besi tract will be the first to be developed. Government-owned 1Malaysia Development Bhd (1MDB) is the developer of the tract for a project known as Bandar Malaysia.
In 2011, the Federal Land Commissioner and 1MDB had signed a sale and purchase agreement for the transfer of the air base to the latter.
Last February (2014), the RMAF surrendered its 1,007-acre (403ha) Butterworth air base under a land swap with TSR Capital Bhd.
According to the Edge Weekly, TSR has formed a joint venture with the Armed Forces Fund Board (Lembaga Tabung Angkatan Tentera) and Pembinaan Bukit Timah Sdn Bhd to develop the site into an estimated RM10 billion mixed-use project.
In Kinrara, the source was quoted as saying the Albukhary group, controlled by government-linked tycoon Tan Sri Syed Mokhtar Albukhary, intended to undertake a mixed development there.
The source said Albukhary expected to get the ball rolling as early as 2016, upon receiving all the approvals. – Edge Weekly, September 6, 2014.
