TSR Capital Bhd has announced that it is in negotiations with the Government to relocate and reconstruct the Royal Malaysian Air Force Butterworth (RMAFB) air base via a land swap.
The 407ha land occupied by the base in Teluk Air Tawar – which is about 8km from Butterworth directly opposite Penang Island – would be transformed into “a city of arts and leisure,” it said in a filing to Bursa Malaysia yesterday.
The company said the proposal to relocate and reconstruct the base on land that had yet to be identified would be carried out by a joint-venture company (JVC) consisting of TSR Capital, Lembaga Tabung Angkatan Tentera (LTAT) and Pembinaan Bukit Timah Sdn Bhd at an equity proportion of 51%, 30% and 19%, respectively.
“TThe Government shall pay the JVC for the new air force base through a land swap at the current market value of the Government land, which included but was not limited to the 407ha land where the existing RMAFB is situated,” the statement said.
The statement added that the land swap meant that the Government need not fund the cost of relocating and reconstructing the air force base, and also secured it the opportunity to participate in the redevelopment of the land via LTAT’s 30% interest in the JVC.
The proposal, which is currently being negotiated between the parties, was mooted by the JVC to the Government along the lines of the public-private partnership concept, it said.
TSR Capital’s statement added that details of the agreement would be released after definitive and conclusive terms had been agreed upon, and a formal agreement entered into by the parties concerned.
Home Penang: TSR Capital to redevelop RMAF Butterworth air base