Airport REIT likely to generate RM700mil a year

Raising funds: The departure levy is applicable to every international departure at a rate RM20 for Asean destinations and RM40 for other regions. — Bernama

PETALING JAYA: The proposed Airport Real Estate Investment Trust (REIT), the first of its kind in the world, is expected to generate more than RM700mil per annum.

Announced during Budget 2019 last week, it will see the departure levy on international passengers being introduced from June 1, 2019. The government will sell a stake in its airport asset into a REIT structure and use the proceeds for enhancement capital expenditure (capex).