KUALA LUMPUR (Nov 24): Property developer and builder TSR Capital Bhd, which had in February this year received approval-in-principle from the federal government to enter into negotiations with the latter to redevelop the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang via a land swap, will be submitting a detailed plan to the RMAF and the Defence Ministry.
TSR chairman Tan Sri Mohamad Noor Abdul Rahim said the detailed plan will include financial models as well as terms and agreements.
"The next stage is to put up a detailed study with all the models and everything (else), to the government so that they can give the letter of agreement," he told reporters after the group's extraordinary general meeting today.
"After that [submission], we will get the approval. Then, we will announce [accordingly]," he added.
Under the proposal, TSR plans to work together with Lembaga Tabung Angkatan Tentera (LTAT) and bumiputera-owned Pembinaan Bukit Timah Sdn Bhd to redevelop the existing 1,007-acre (407.52ha) air force base in Butterworth into an integrated mixed-use project with a potential gross development value of more than RM10 billion. The three companies will also develop a new RM3 billion air force base for the RMAF near mainland Penang.
Mohamad Noor said getting approval for the land-swap deal is not easy as TSR is required to build a new fully operational base for the RMAF, which is capital intensive.
The airbase will be relocated to Ara Kuda in Tasek Gelugor, which the RMAF and the Department of Civil Aviation, Malaysia has agreed to in principle.
He added that the firm also has to get approval from the Penang state government.
Mohamad Noor declined to provide a timeline for the necessary approvals, saying the process is 'now a bit slow'.
TSR group accountant Ng Kim Keong said the group has incorporated joint venture (JV) company LTP Wibawa Sdn Bhd, which it will hold a controlling stake of 51%, to undertake the mixed-use project.
LTAT and Pembinaan Bukit Timah will hold a 30% and 19% stake respectively in the JV firm.
At midday break, TSR shares were down 3 sen or 3.4% to 85 sen on trades of 4,000 shares.