SINGAPORE (Mar 25): Boustead Projects is jointly developing an aerospace and high-tech park in the Subang Aerotech Park which will be leased to corporations in the aerospace industry when completed.
BP Aerotech (Subang), Boustead Projects’ wholly-owned subsidiary in Malaysia, last Friday signed a joint venture agreement with Malaysia Airports (Subang) to incorporate a joint venture company BPMA Subang to undertake the development.
BP Aerotech (Subang) will carry out the design, construction, project management, development management, testing, commissioning and fit-out works and asset management or property management for the park's aerospace developments.
BP Aerotech and its joint venture partner – MA Subang – will respectively hold stakes of 70% and 30% in BPMA Subang. MA Subang is a wholly-owned subsidiary of Malaysia Airports Holdings Berhad (MAHB) which is listed on Bursa Malaysia.
Under the agreement, MAHB has granted BPMA Subang the rights to sublease up to about 34.66 acres of land next to Subang Airport for the aerospace developments, subject to MAHB obtaining the relevant authority approvals for the sublease.
Thomas Chu, MD of Boustead Projects, says, “Malaysia, in particular Selangor, is expected to continue playing an important role in the Asia Pacific’s growing MRO market for aircraft. Our partnership with MAHB will allow us to further expand our overseas presence in a high value sector where we are able to add value, given our integrated and growing capabilities across design-and-build and development, and our experience and track record in delivering projects in the aerospace sector which currently stands at over 200,000 sqm in gross floor area.”
As at 9.52am, shares in Boustead Projects are trading at 93 cents.