DRB-Hicom to take over 23-year Angkasapuri facilities concession

The company which DRB-Hicom is buying into will undertake the planning, financing, construction, installation, and completion of new facilities and infrastructures on Angkasapuri's premises.

KUALA LUMPUR: DRB-Hicom Bhd has proposed to acquire a 51% stake in Media City Ventures Sdn Bhd (MCVSB), whose unit holds a 23-year government concession to set up new facilities and infrastructures on Angkasapuri’s 15.72-acre premises.

It told Bursa Malaysia on Thursday that it had signed a conditional agreement to buy the stake from Enigma Permata Sdn Bhd for RM85.68mil.

MCVSB owns  Media City Holdings Sdn Bhd, which in turn wholly owns Media City Development Sdn Bhd.

Media City Development holds the concession to undertake certain things pursuant to the terms and conditions under the concession agreement dated March 20, 2012 entered into with the Government (Communications and Multimedia Malaysia Ministry) and Syarikat Tanah Dan Harta Sdn Bhd.

Among others, it is to undertake the planning, financing, construction, installation, and completion of new facilities and infrastructures, including the broadcast equipment and system, on Radio Television Malaysia’s headquarters’ existing premises.

In return, Media City Development will be entitled to receive availability charges, asset management service charges and broadcast maintenance charges by way of monthly payment in arrears.

Within 30 days from the issuance of the certificate of acceptance for the facilities, infrastructure and broadcast equipment systems, the Government will transfer parts of three 99-year leasehold lands measuring 11.28 acres in Kuala Lumpur to Media City Development.

Under the concession agreement, the company is required to develop a portion of the land measuring 4.14 acres into a mixed development comprising a hotel and a commercial complex, with offices and food and beverage outlets within five years of the transfer of the land.

DRB-Hicom said the total construction, supply and installation costs under the concession agreements of RM860mil would be financed via a mixture of external borrowings and equity and/or shareholders’ advances. 


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