KUALA LUMPUR: The Malaysia Basketball Association (Maba) are looking to become the first financially self-sustainable national sports association (NSA) in Malaysia after inking a land redevelopment deal with Exsim today.
The joint venture with Exsim, a renowned property developer, will see Wisma Maba and the adjacent Maba Stadium at Jalan Hang Jebat being demolished to make way for the new Maba Suitez @ KL City Centre project.
Maba-Exsim have dubbed the project a hospitality building - essentially a service apartment - featuring two blocks of 60-storey towers with approximately 1,200 units though this remains subject to approval from the relevant authorities.
The project has an estimated gross development value of RM800 million.
Maba president Datuk Seri Lee Tian Hock disclosed that Maba will receive a cash consideration of RM170 million from the deal which will be reinvested by purchasing units in the new buildings.
"This is a memorable day for Maba. After this (JV) signing, Exsim, on behalf of Maba, will begin making applications for approval (from authorities) for this development," said Tian Hock.
"We hope to begin work at the site by the end of next year, of course subject to approval and hopefully it will be completed within five or six years.
"In return, we will receive RM170 million which we will use RM100 million to buy back units from Exsim. As the land owner, we have certain discounts and also have first right to choose the units.
"When it is ready, Maba will have a very good stream of recurrent income (through transient rentals). I estimate we will generate roughly RM4 to RM6 million each year, though this will vary according to the economic situation at the time.
"This income will help us run our annual programmes. This includes tournament activities which can cost between RM3 to RM4 million each year as well as cover our operating expenses of about RM1 million each year.
"We also have a plans to assign two units to each of our 18 affiliates so they can also have recurring income to run their own activities.
"This will make Maba the first Malaysian NSA to stand on its own feet financially. Hopefully we can inspire others to emulate us.
"We cannot keep on asking the government for funding and cannot rely on donations all the time. We have to learn to be independent, this is our goal."
Maba will also receive a 3,000 square feet office in one of the new buildings, with a three-on-three basketball court next to it, to use as their headquarters.
Tian Hock added that the remaining RM70 million will be reserved for paying taxes and other expenses.
"Next to Wisma Maba there is car park block which was built by somebody else, with whom there is a tenancy agreement," said Tian Hock.
"We want to cancel the agreement and pay them compensation using part of this (RM70 million) money."
Wisma Maba, a 12-storey building, was developed in 1971 while the Maba Stadium, which has a seating capacity of 1,800 people, was built in 1995.