Bookmark & Share
Keppel Land’s wholly-owned subsidiary PT Keppel Land has agreed to sell its 80 percent stake in a six-storey retail mall in Surabaya, Indonesia to Silverise Enterprise and PT Pelangi Arjuno for 400 billion rupiah (S$42.8 million), media reports said.
Known as BG Junction, the strata-titled retail property near the central business district in Jalan Bubutan comes with a net floor area of about 47,000 sqm and an adjacent car park. At present, 95 percent of its space is occupied by anchor tenants such as Hartono Electronic, Carrefour hypermarket and Cahaya Departmental Store.
After the divestment is completed by end-2014, the company is expected to gain an after-tax profit of around S$12.5 million.
“We constantly review our portfolio to maximise returns and redeploy capital to new projects. Indonesia remains one of Keppel Land’s key growth markets, where we are focused on the Greater Jakarta region,” said Keppel Land’s President for Indonesia Sam Moon Thong.
Moreover, the company is currently developing Tower 2 at Jakarta’s International Financial Centre (IFC). Scheduled for completion by H2 2015, the 48-storey Grade A office building will have about 50,000 sqm of net lettable area.
Keppel Land’s portfolio of Indonesian projects includes a recently acquired 3ha residential site in West Jakarta and Ria Bintan, an integrated resort consisting of hotels and golf courses.
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
Related Articles: