5 March 2018

The owner of Subang Skypark Sdn Bhd (SSSB), Tan Sri Ravindran Menon is in discussions to sell up to 60 per cent stake in SSSB to WCT Holdings Bhd.

Tan Sri Ravindran Menon
Subang Skypark Sdn Bhd (SSSB) owner Tan Sri Ravindran Menon (Photo by ROSELA ISMAIL)

According to a source who has knowledge of the matter, WCT Holdings could undertake some parts of Skypark’s refurbishment projects post share sale, although the details are currently under negotiations including the amount of the share sale.

The Subang airport’s refurbishment plans include extending the former Terminal 2 (T2) into Terminal 3 by developing a retail extension of 320, 000 sq ft as well as upgrading works on the airport facilities and construction of five new aircraft hangars.

It also includes the development of 350, 000 sq ft multi-level car park with 1,155 bays.

"WCT Holdings would work on the expansion plan, excluding T2,” the source told NST Business, suggesting that some parts of the T2 extension could still be developed by SSSB.

Menon holds 30 per cent stake in SSSB while his business partner Datuk Aisamar Kadil Mydin Syed Marikiah holds the other 30 per cent.

Anggun Intelek Sdn Bhd, a Temasek Padu Sdn Bhd subsidiary holds 40% of the airport.

SSSB won a 59-year concession agreement from Malaysia Airports Holdings Bhd (MAHB) for some RM313 million in 2008.

WCT Holdings has experience in undertaking airport-related projects as it previously developed the shopping mall, Gateway@KLIA2 at the Kuala Lumpur International Airport 2.

The company also developed an integrated complex at KLIA2, which includes a transport hub for the Express Rail Link (ERL), buses, taxis, car rental services and private transport.

The sources said WCT Holdings, which is linked to Pavilion Group’s chairman and executive director Tan Sri Desmond Lim, could also develop the land surrounding the Subang Skypark Terminal.

"There might be a low-rise development around the area such as low-rise apartments and malls. This is one of the sweet spot for property developers so I think he (Lim) is interested to develop this area,” the source said, adding that the new malls might be operated by Pavilion Real Estate Investment Trust (Pavilion REIT).

Pavilion REIT currently operates four malls in Malaysia which includes the Pavilion Mall, Pavilion Tower, Intermark Mall and Da Men Mall.

It is also acquiring Elite Pavilion Mall, the new retail landmark in Bukit Bintang for RM580 million cash.

The Subang Skypark Terminal, formerly known as the Sultan Abdul Aziz Shah airport, would still be operational after the share sale, said sources.

“The airport is under MAHB and they will still manage the airside operations. They have always been running the airside operations,” the source further said.

There are currently four commercial and private airlines that are flying out of Subang Skypark, which includes Malaysia Airlines Bhd’s turboprop arm FlyFirefly Sdn Bhd, Malindo Airways Sdn Bhd, Berjaya Air and VistaJet.

The airport has surpassed the 15 million passenger mark in 2017.

Original Source: nst