TSR Capital to re-submit Penang RMAF plans

KUALA LUMPUR: TSR Capital Bhd is in the midst of adjusting the proposed plans for the relocation and redevelopment of the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang and will make a second submission to the RMAF and Defense Ministry.
"We have received the letter of intent (LOI) from the government ... the next stage is to put up a detailed study, all the models and everything, to the government, then they can give us the letter of agreement (LOA). Now we have got to sit down with RMAF, the Defense Ministry, to find out what are the details and put up the financial models, put up our agreements, terms and conditions, then we submit to the government," its chairman Tan Sri Mohamad Noor Abdul Rahim told reporters after its EGM yesterday.
He said the company has already appointed consultants for the project, which will need approval from various parties including the Penang state government as well as cabinet approval, before any agreement is signed and construction work can commence.
To recap, TSR Capital set up a joint venture (JV) company with Armed Forces Fund Board (LTAT) and Pembinaan Bukit Timah Sdn Bhd to relocate and establish a new RM3 billion RMAF base in Tasek Gelugor and redevelop the existing 1,007 acre air force base into an integrated mixed-use project with a gross development value (GDV) of over RM10 billion.
The JV company, LTP Wibawa Sdn Bhd, is 51% held by TSR Capital while LTAT and Pembinaan Bukit Timah hold 30% and 19% respectively.
On opposition from some parties on the redevelopment of the current facility, Mohamad Noor said this is because the details of the proposed redevelopment plans have not been divulged yet.
"We are not taking any land belonging to individuals. It is solely air force land which is federal government land. It so happened that on some of the air force land there are squatters. We have taken inventory of the squatters so that we can relocate them to better housing," he said.
On how soon the company will re-submit its proposal, TSR Bina Sdn Bhd group accountant Ng Kim Keong said there is no specific time because it is subject to comments from many parties and is likely to take some time.
Meanwhile, the company is in the midst of expanding its property development business. Ng said it has planned two launches next year with a total GDV of RM320 million. The two launches are within its ongoing developments in Port Dickson, Negri Sembilan and Bandar Enstek, Nilai.
It is also in talks with landowners for potential JVs in the Klang Valley, especially in Petaling Jaya and Kuala Lumpur.
In the construction business, its current outstanding order book stands at RM402 million while its tender book, excluding JVs, stand at RM500 million.
Ng said the construction business is currently the biggest contributor to revenue at 70%, followed by property development at 20% and property investment at 10%.
He said the target is to have 50% revenue contribution from construction, 40% from property development and 10% from property investment in two years' time.