Joint Venture to Bring Luxury to Cikarang
Industrial estate developer Jababeka and property developer Plaza Indonesia Realty have joined forces to build a superblock at Jababeka industrial estate, in Cikarang, 75 kilometers to the east of the Jakarta.
The joint venture, which is estimated to cost Rp 4 trillion ($346 million), will consist of apartments, offices, hotels and commercial centers catering to the upper-middle income class.
“This project is currently still in a phase of designing the master plan.. it is for an integrated area of 16 hectares,” Jababeka’s corporate secretary Mulyadi Suganda told Investor Daily in Jakarta recently.
Mulyadi said the company will begin marketing the mixed-use units in 2015-16, while waiting for the completion of the masterplan draft.
“The location is close to the existing project, owned by Jababeka, which has been growing rapidly,” Mulyadi explained.
Jababeka’s subsidiary Cikarang Graha Buana previously collaborated with Plaza Indonesia Realty in two joint ventures: Jababeka Plaza Indonesia (JPI) and Plaza Indonesia Jababeka (PIJ). Jababeka controls a 70 percent stake in JPI and Plaza Indonesia controls the remainder.
JPI will develop the project on an area of four hectares and PIJ will work on a wider area of 12 hectares.
Managing director of Jababeka SD Darmono said that the development of malls similar to Central Jakarta’s Thamrin Plaza, is most needed in Cikarang and its surrounding areas.
“The population has reached one million but there are so few malls. This integrated area requires luxurious malls like Plaza Indonesia, so they will most likely to be built first,” Darmono said.
In the second joint venture, Plaza Indonesia has a 70 percent stake in PIJ, and Jababeka controls the remainding 30 percent.
Jababeka announced earlier in July that it is set to sell $350 million in bonds next year, in an attempt to pay debts and finance the company’s business expansion. The announcement was made at the annual general shareholders meeting, in which the company’s bond issuance plan to pay back its $175 million five-year bonds due in 2017 was approved.
Source: Jakarta Globle