Boustead Projects inks JV deal to develop aerospace, high-tech park in Subang

BOUSTEAD Projects has entered into a joint-venture (JV) agreement with Malaysian-listed Malaysia Airports Holdings for the incorporation of a JV company to undertake the development of an aerospace and high-tech park within the Subang Aerotech Park in Subang, Malaysia.

Through the JV, their respective subsidiaries - BP Aerotech (Subang) and Malaysia Airports (Subang) - will hold 70 per cent and 30 per cent of the equity interest in the JV company BPMA Subang.

The initial paid-up capital in BPMA Subang will be RM10 (S$3) contributed by BP Aerotech and MA Subang in proportion to their respective shareholdings.

In a filing with the Singapore Exchange after market close on Friday, Boustead Projects said: "Malaysia Airports Holdings has granted BPMA Subang the rights to sublease up to about 34.66 acres (or about 140,264 square metres) of land next to the Sultan Abdul Aziz Shah Airport (also known as Subang Airport) for the aerospace developments, subject to Malaysia Airports Holdings obtaining the relevant authority approvals for the sublease."

BPMA Subang is likely to appoint a business unit of Boustead Projects to carry out the design, construction, project management, development management, testing, commissioning and fit-out works and asset management or property management for the aerospace developments.

The completed aerospace and high-tech park will be leased to corporations in the aerospace industry.

Boustead Projects closed flat at S$0.93 before the announcement.