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CapitaLand announced Monday (17 November) that it has teamed up with a unit of Indonesia’s Credo Group for the construction of a mixed-use project with a total development cost of about S$220 million in Jakarta’s central business district.
Each company will hold a 50 percent stake in the joint venture (JV).
Touted as CapitaLand’s maiden integrated development in the Southeast-Asian country, the 40,000 sq m project will consist of retail space, serviced residences, mid- to high-end apartments and Grade A office tower.
Construction is expected to start next year, with completion targeted by 2018.
Under the agreement signed by CapitaLand and Credo Group, the JV firm will purchase latter’s 1ha site situated within Jakarta’s central business district (CBD). Accessible via major roads, the land parcel is also close to offices, embassies, the National Monument, luxury residential enclaves and well-known civic buildings.
“CapitaLand is pleased to partner CG and its principals while leveraging our expertise in shopping malls, serviced residences, offices and homes for the Group’s first integrated development in Indonesia,” said its President & Group CEO Lim Ming Yan.
“This is an exciting milestone for a re-energized CapitaLand as we build a Pan-Asian portfolio with a focus on integrated developments.”
In a statement, Lim added that the company is also confident that the project will be warmly received by the market thanks to the strategically located site and reputable local partner. Jakarta was also named one of the fastest growing global cities for office space and prime houses, and this positive trend is expected to continue due to Indonesia’s growing middle-class.
The partnership is not expected to have any material impact on the CapitaLand’s net tangible assets or earnings per share for the fiscal year ending 31 December 2014.
Image: Jakarta’s Skyline (Source: Wikimedia Commons, yohanes budiyanto)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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