The airport operator, in a filing with Bursa Malaysia, said a 99-year development agreement had been reached between KLIA Aeropolis Sdn Bhd and the Malaysian government from Nov 17, Bernama reported.

The company, a wholly-owned subsidiary of MAHB, will plan, design, develop and construct KLIA Aerotropolis. There is also a land lease agreement with the Federal Commissioner of Lands for a 99-year lease from Nov 17 which gives the company the rights to occupy, use, control, manage and sublease the land.

Malaysia Airports (Sepang) will retain 47 lots of land of about 9,300 hectares for KLIA airport operations, the filing said.

MAHB and Malaysia Airports (Sepang) signed an operating agreement with the government in 2009, for the development and operations of Kuala Lumpur International Airport over 25 years until Feb 11, 2034.

The filing said that based on engagements with various potential investors and businesses, there were “challenges faced” by them to get a palatable return on investment due to the short remaining tenure of the land lease.