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Singapore-listed Pacific Star Development is set to develop a mixed-use waterfront project in Jakarta, Indonesia.
This comes after its wholly-owned unit PSD Singapore entered into a non-binding memorandum of understanding (MOU) with Indonesian developer PT Kukuh Mandiri Lestari (KML) to jointly develop a mixed-use high-rise development on 10ha of sea-front land in in Pantai Indah Kapuk 2 (PIK 2).
Marking the second phase development of the Pantai Indah Kapuk project, the 1,000ha PIK 2 will feature commercial, residential, hospitality, and recreational facilities.
PIK 2 is master developed by KML, which is a 50:50 joint venture between two established Indonesian developers, with strong portfolios of notable developments and businesses across Indonesia.
“We are committed to our ASEAN expansion strategy and Indonesia, as the largest economy in South-East Asia, is a key growth market for PSD,” said PSD CEO and managing director Glen Chan.
“This new joint venture project provides Pacific Star Development with a unique opportunity to establish ourselves in the Indonesian real estate market at an opportune time.”
Pursuant to the MOU, the parties will negotiate the terms of the proposed joint venture, with “the specific terms to be set out in definitive agreements to be entered into by the parties at a later stage”.
In a statement, Pacific Star noted that the potential joint venture “is subject to, amongst other things, the execution of the definitive agreements in relation to the potential joint venture and there is no certainty or assurance that the definitive agreements will be entered into or that the potential joint venture will take place”.
“The company will make the necessary announcements as and when there are material developments to the potential joint venture,” it added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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