Airport REIT puts MAHB in the spotlight
Doreen Leong | 30 Nov 2018 00:30
When Finance Minister Lim Guan Eng proposed an airport real estate investment trust (REIT) in his budget speech on Nov 2, the stock market did not take it well.

The following Monday when the market opened, airport operator Malaysia Airports Holdings Bhd (MAHB) saw its shares dive 99 sen or 12% to RM7.26 in early trade. Lim’s proposal, for the first airport REIT in the world, caught many by surprise, including MAHB.

However, MAHB acting group CEO Raja Azmi Raja Nazuddin is taking it in his stride. He believes the more pertinent issue at hand is the finalisation of the operating agreement (OA) and regulated asset-based (RAB) framework before the airport REIT is put in place.

“This will probably happen after the finalisation of the RAB. We don’t have the full details and we will approach it after the RAB,” Raja Azmi tells FocusM.

He expects the RAB negotiations between MAHB and the Malaysian Aviation Commission (Mavcom) to be concluded sometime in the middle of next year.

According to Lim, the REIT exercise will only be carried out after the new RAB and user fees structure have been negotiated and finalised.

Download and read the latest issue of Focus Malaysia here:
Shopee wraps up a record-breaking 2018

Shopee wraps up a record-breaking 2018 with over 12 million orders on 12.12 Birthday Sale

Impiana KLCC recognised for excellence at the HAPA

Impiana KLCC hotel recognised for excellence of its recreational spa and restaurant at the HAPA Malaysia Awards Series