KUALA LUMPUR (Aug 27): Bintulu Port Holdings Bhd's (KL:BIPORT) wholly owned subsidiary Samalaju Industrial Port Sdn Bhd (SIPSB) has entered into a memorandum of sublease with the Samalaju Port Authority for long-term land rental agreements.

The agreement covers three parcels of land located in the Samalaju Industrial Park in Bintulu, Sarawak, spanning approximately 347.1 hectares, which will be used to construct, operate, and maintain port facilities. 

SIPSB, as the Approved Port Operator under the Port Authorities Ordinance, 1961, will develop infrastructure, including buildings, storage tanks and operational installations, to support its responsibilities, according to its bourse filing.

The sublease for Lot 295, initially secured in 2017, runs from June 1, 2017, to May 31, 2057, with an option to renew for an additional 20 years. 

The newly signed subleases for Lot 83 and Lot 312, dated Aug 8, 2025, extend through June 30, 2057, also with a 20-year renewal option. 

Rental terms are structured with periodic increases: Lot 295’s annual rent rises from RM2.72 million in 2017 to RM9.10 million in 2056, while Lots 83 and 312 start at RM1.86 million annually from 2025 to 2028, increasing to RM5.74 million in 2029–2033, and subject to 10% increments every five years thereafter.

SIPSB is required to provide a security deposit equivalent to six months’ annual rent, payable in cash or via bank guarantee, refundable upon compliance with lease terms. 

The group believes the subleases are essential for SIPSB to fulfil its role as the designated port operator and will contribute positively to its long-term earnings once operations reach full capacity. 

The rental obligations will be funded through internally generated funds, with no immediate material impact on Bintulu Port’s share capital, net assets, or gearing.

No approvals from shareholders or regulatory bodies are needed beyond registration with the Sarawak Land and Survey Department.