KLIA Aeropolis: Making of an Aerotropolis

KLIA Aeropolis:
Making of an Aerotropolis
1
MAHB…
[CLIENT NAME]
Langkawi
84 mn
Passengers(1)
…at a glance
RM11 bn
Market cap(4)
Pulau Pinang
KLIA
+ 38 Airports
In Malaysia
8.3% ROE(3);
9.4%
EBITDA growth(3)
KLIA
Kota Kinabalu
Top 5
Global rankingAirport service
quality
International
At least 50% of
net profit
paid as dividends(2)
Domestic
Short take-off & landing
Served by 10,000
staff
Investments in 3
airports overseas
(1 in Turkey,
2 in India)
Kuching
AAA / A3
RAM & Moody’s
credit rating
>10% of revenue
(>RM200 mil)
paid to Govt.
36.6%
Khazanah
ownership
Source: MAHB
Note: (1) Last twelve months up to 30 June 2014; (2) From 2007 to 2013, excluding IC12 accounting adjustments; (3) 5-year CAGR during 2008-2013; (4) MAHB market cap as of 4
July 2014
From Operator to World-Class Airport Business
2014
2011-12
2010
2009
2004
MOF (Inc)'s 50% stake
in Malaysia Airports
transferred to
Khazanah, which ended
up with a 73%
shareholding (36.6% as
at May 2014).
Transformation
introduced with
Malaysia Airports being
run as a commercial
entity
2006
Becomes one of
Khazanah’s top 20
GLCs with high
performance
expectations
Opening of first
dedicated terminal
for LCCs (LCCT KLIA)
regionally
New Operating
Agreements signed.
Now restructured
and able to operate
with a clear business
direction
Launched 5-year
business plan,
Runway to Success
(2010 to 2014)
Malaysia Airports is
rated AAA / A3 by
RAM / Moody's
2011
Signs largest
investment into
KLIA (RM500
million cost) by
WCT Bhd
2012
Attracts largest
foreign investment
into KLIA (RM300
million cost) by
Mitsui-Fudosan Co
Ltd
Opening of klia2, the
world's largest
purpose-built terminal
for low cost carriers
Completed 40%
acquisition in Sabiha
Gökçen Int’l Airport,
with current equity
interest now at 60%
Operations Overview
Aeronautical
2013 revenue
Aeronautical
Commercial
Retail
Others
RM 1,211mm
RM 504mm
RM 610mm
RM 137mm
49%
20%
25%
6%
% of
revenue(1)
Key revenue
streams
Non-Aeronautical
 Pax service charges
 Rental and royalties
 Duty free sales
 Hotel
 Landing & parking
 Car park
 Other retail sales
 Agriculture and
 MARCS (government
 Advertising
horticulture
 Consulting, maintenance
subsidy)
and technical service
Regulation
Growth
potential
Favourable regulatory
framework
Unregulated
Unregulated
Unregulated
High
High
High
Medium / Stable
Source: MAHB
Note: (1) Based on total revenue for FY13 excluding IC12 Construction revenue of RM1,636mm
Shareholdings Analysis
As at 31/12/08
As at 30/04/14
•
Foreign participation has grown by 1.9% post March
FY14 private placement which almost half of the deal
was taken up by foreign investors
•
Dividend Payout Ratio is 50% of Net Profit
Achieving Our Vision
Fastest-growing major hub in Asia
KLIA outperforms key hubs in Southeast Asia
Over ¼ of the world’s population lives within a 4-hour
flight radius of KLIA
HKG
KLIA’s high growth vs key regional hubs
(2008-2013 pax CAGR)
11.7%
MUM
9.9%
BKK
9.5%
8.3%
KLIA
SIN
5.3%
CGK
 Strategic geographic location
 Huge population catchment area
 Strong in-bound tourism – 10th most visited country globally
CGK
KLIA
(2)
BKK
(3)
SIN
HKG
 Air travel the most important transportation mode in the
region
 Strong and fast-growing LCCs – 16.5% CAGR over last 5 years(1)
Source: Company filings, United Nations World Tourism Organization, MAHB
Note: (1) Based on historical LCCT passenger growth in 2008 – 2013; (2) Bangkok Airport includes Suvarnabhumi Airport and Don Mueang International Airport; (3) Singapore pax is based on YTD Nov 2013
World class airport operator
Amongst the lowest airport charges in the region(1)…
International passenger service & related charges
Landing charges A320
Charges (RM)
Charges (RM ‘000)
80
Avg. RM 67.50(3)
2.5
60
2.0
40
1.5
20
1.0
0
0.5
SIN
HKG
BKK KLIA
(AOT) MTB
CGK
… but achieving above-average ROE(2)
Avg. RM 1.5K
HKG
10.8%
SIN
10.6%
MAHB
9.7%
AOT
KLIA 0.0
LCCT
7.0%
BCIA
HKG
SIN
CGK
BKK
(AOT)
4.7%
KLIA
Avg. 8.6%
Robust passenger traffic growth, which has endured even the most extreme shocks
9/11
(‘mil pax)
Global
Financial
Crisis
SARS
EU
Sovereign
Debt Crisis
100
80
80
60
40
33
33
34
34
2000
2001
2002
2003
39
42
43
45
2004
2005
2006
2007
48
51
2008
2009
58
64
67
2011
2012
20
0
2010
Source: Factset, company filings, flightglobal, MAHB
Note: (1) As of Feb 2014; (2) Past 5 years average ROE: HKG and SIN as of FYE Mar 31 and AOT as of FYE Sep 30; (3) Average excludes KLIA LCCT international passenger service fee and related charges
2013
KLIA Aeropolis
What’s Next?: Upcoming Development Projects
1
Cargo / Logistics / Business Parks
2
Office Suites + Hostel Facilities / Service Apartments
3
Theme Park Mega Cluster
4
Hospitality cluster: incl. Golf Course & MICE
(includes LCCT conversion)
Speed
Flexible
Partnerships
Multiplier benefits
10
KLIA Aeropolis
Potential Parcels:
1
2
Cargo / Logistics / Business Parks
2
Office Suites + Hostel Facilities / Service
Apartments
3
Theme Park Mega Cluster
4
Hospitality, Leisure and MICE
cluster
4
3
1
1
11
KLIA Aeropolis
Development of Parcel 1a – Cargo / Logistics (95 acres)
Proposed Investment Mechanism for Parcels
1.
Investment in common infrastructure: RM100-150 million*.
2.
Floor rates of RM25/sqm (landside) and >RM50/sqm (airside).
3.
Successful bidder or site developer will pay MAHB as follows:
1
a)
Upfront lease payment for entire parcel: x% of present value
b)
Monthly service fee for common infrastructure costs
Notes:
1
Components of Parcel 1:
a.
LCCT Conversion
b.
Cargo Logistics Park
c.
Southern Support Zone
a.
Upfront lease payment for entire parcel will be reinvested to develop other parcels.
b.
Alternatively, MAHB to form an SPV for each individual parcel, whereby the land asset
is injected into the SPV. Potential bidders are to buy out stake in the SPV, up to 70% 100% of equity calculated from the potential GDV, (depending on MAHB's
equity/control strategy for each parcel).
* Based on nett direct common infrastructure development cost of LCCT conversion, Southern
Support Zone and Cargo Logistics Park totaling to 95 acres.
12
** Lease payment rate is escalated at 3% every year
KLIA Aeropolis
Development of Parcel 4 – Hospitality, Leisure and MICE cluster
Proposed Investment Mechanism for Parcels
Golf Course & MICE
4
ILLUSTRATION
1.
Investment in common infrastructure: RM50-100 million
2.
Floor land lease rate of RM49/sqm/year
3.
Successful bidder / developer will pay MAHB as follows:
a)
Upfront lease payment for entire parcel: x% of present value
b)
Monthly service fee for common infrastructure costs
Notes:
Components of Parcel 4:
a.
18 hole Golf Course & Range
b.
5 Star Themed Hotels
c.
F&B and retail options
d.
Convention and
Conferencing facilities
a.
Upfront lease payment for entire parcel will be reinvested to develop other parcels.
b.
Alternatively, MAHB to form an SPV for each individual parcel, whereby the land asset
is injected into the SPV. Potential bidders are to buy out stake in the SPV, up to 70% 100% of equity calculated from the potential GDV, (depending on MAHB's
equity/control strategy for each parcel).
* Based on nett direct common infrastructure development cost of MOP, ICON, carpark and
future development totaling to 100 acres.
** Lease payment rate is escalated at 3% every year
13
KLIA Aeropolis
Development of Parcel 2 – Office Suites (15 acres)
2
Components of Parcel 2:
a.
Airline Headquarter Offices
b.
Airline office buildings
c.
Other office buildings
d.
Hostel facilities
e.
Service apartments
* Based on nett direct common infrastructure development cost of MAS Headquater, AirAsia
Academy and AirAsia House totaling to 15 acres.
14
** Lease payment rate is escalated at 3% every year
KLIA Aeropolis
Development of Parcel 3 – Theme Park Mega Cluster (500 acres)
Proposed Investment Mechanism for Parcels
3
1.
Investment in common infrastructure: >RM500 million.
2.
Floor lease rate at RM49/sqm/year; higher for hospitaliaty if stand-alone.
3.
Successful bidder or site developer will pay MAHB as follows:
a)
Upfront lease payment for entire parcel: x% of present value
b)
Monthly service fee for common infrastructure costs
Notes:
Components of Parcel 3:
a.
Theme Parks
b.
Hotels
a.
Upfront lease payment for entire parcel will be reinvested to develop other parcels.
b.
Alternatively, MAHB to form an SPV for each individual parcel, whereby the land asset is
injected into the SPV. Potential bidders are to buy out stake in the SPV, up to 70% - 100%
of equity calculated from the potential GDV, (depending on MAHB's equity/control
strategy for each parcel).
* Based on nett direct common infrastructure development cost of Theme Park and Hotel
totaling to 500 acres.
** Lease payment rate is escalated at 3% every year
15
KLIA Aeropolis
Summary of Parceling of Developments – Phase 1
Parcels
Total Acreage
Cargo/ Logistics /
Business Parks
95
Office Suites, Hostel and
Service Apartments
15
Theme Park Mega
Cluster
500
Hospitality, Leisure and
MICE cluster
150
Total
760
* Average of 4 parcels
RM1 billion –
investment
GDV –
RM5
billion
Airport Cities - Concept
Airport City reflects the transformation of an airport’s traditional image
where aircraft operate, serving aircraft, passenger and cargo to a new
broader concept whereby major airports have developed significant nonaeronautical facilities, connectivity, services and revenue streams. Their
commercial reach and economic impact extend beyond airport boundaries.
The Airport City will eventually become a multimodal destination in its own
right for business, shopping and leisure, contributing to the overall
prosperity of the airport and the surrounding communities.
Airport City Concept
AIRSIDE
LANDSIDE
• Passenger terminal
merged with shopping
mall
• Retail
• Restaurant
• Leisure
• Free Trade Zones
• Logistic Facilities
• Air Cargo Facilities
• Hotels &
Entertainment
Facilities
• Office & Retail Centres
• Convention &
Exhibition Centres
• Free Trade Zones
• Time Sensitive Goods
Processing Facilities
AIRPORT
CITY
CITY
18
Attracting Related Industries And Other Commercial
Ventures to Evolve Into an Airport City
Example of potential business components at Airport Cities :
Airport and Terminal
Related Activities
Banks &
Currency
Exchange
Transport
Hub
Attracting Related Industries And Other Commercial
Ventures to Evolve Into an Airport City
Boutique Commercial Centre :
Supermarket, Retail, F & B, Hair
Saloon, Etc.
Cultural & Entertainment Attractions
Leisure, Recreation &
Fitness Facilities
Convention & Exhibition
Complexes
AIRPORT
ORIENTED
ACTIVITIES
Factory Outlets
Stores
Business Offices
Complexes
Landside Hotels
Service Apartments
Car Parking Facilities
Golf Courses
Service Stations
Theme parks
Some of the airports with large passenger capacity and has
advanced in their Airport city development has indicated a
non aero income of higher than 50%.
Their non-aeronautical could be as high as 2/3 of their
income. eg. Schipol, Frankfurt, DFW, HKIA.
For KLIA, our 2013 non-aero revenue is over RM1.5 billion
or over 50% of total revenue of RM3 billion.
Kuala Lumpur
KLIA – Location & Surrounding
Location
• 60 km South of Kuala
Lumpur
• 15 km from Putrajaya &
Cyberjaya
Putrajaya
Cyberjaya
Surrounding
(within 10
km)
Surrounding
(within 20
km)
• 4 townships
• 4 hotels (5 star & 3 star)
• No shopping Centre
• No hospital
• 1 golf course
• 10 townships
• 4 hotels (5 star & 3 star)
• 1 shopping mall
• 2 hospitals
15 km
• 2 golf courses
Putrajaya
Nilai
KLIA
Enstek
10 km
5 km
Seremban
Sepang
Goldcoast
OTHER AIRPORT CITY DEVELOPMENTS
FIRST
STAGE
SECOND
STAGE
HKIA
Residential
Logistics & marine cargo
Airline offices, police, etc
Incheon
Residential
Leisure: golf courses
Accessibility: SkyPier & coach
station
AsiaWorld-Expo
Free Trade Area: Logistics &
manufacturing
THIRD
STAGE
Accessibility: SkyPlaza
Podium
Shopping centre
Airport World Trade Centre
SkyCity Golf course
SkyCity Marriot
FUTURE
Business Park
General
commonalities
Fashion City
International Business Centre II
Logistics park with sea access
Marine resort, casinos, theme
park
Dubai (DWC)
Dubai Logistics City
Dubai Residential City
Dubai Exhibition City
Dubai Commercial City
Dubai Enterprise Park
Golf Resort
•residential – build local & labour base
•cargo & logistics
generate direct aviation revenue
•convention/ expo centre generate indirect revenue
•then, leisure
MASTER PLAN – POST NAMP Study -2009
Total KLIA Land
• 22, 156 acres
Developed Land
• 6, 000 acres
Remaining
Undeveloped Land
• 16, 156 acres
Landside Dev.
(Approved +
Additional)
• 6,750 acres
Land Tenure
• 60 years for
commercial use
1
3
New area for future
development
4,020 acres
6
Site Prepared for
development of
Factory Outlets
and other suitable
components
2 4
3
5
1. Commercial Business District
2. Free Commercial Zone
3. Recreational & Institutional Zone
4. Agro-Tourism & Theme Park
5. Natural Conservation Zone
6. Green Tourism Zone
Suitable Area for
MRO Activities,
Manufacturing,
Warehousing and
Logistics
24
Thank you!
[CLIENT NAME]