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Summarecon sells Rp 2t bonds for expansion
Publicly-listed property developer PT Summarecon Agung (SMRA) plans to issue bonds worth about Rp 2 trillion (US$203
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ublicly-listed property developer PT Summarecon Agung (SMRA) plans to issue bonds worth about Rp 2 trillion (US$203.91 million) to finance new township and hotel development projects, the company's top executive has said.
Summarecon president director Johannes Mardjuki said in Jakarta that the company expected to raise about Rp 1 trillion in the first stage of the bond offering, which would be carried out in the second half of this year.
He added that most of the funds raised from the bond offering would be used to expand the company's land banking.
Summarecon has appointed three securities firms to jointly underwrite the bond issuance, namely PT Indopremier Securities, PT Andalan Artha Advisindo (AAA) Sekuritas and PT Makinta Securities.
A number of plans are being developed to acquire land in South Jakarta and Bandung, West Java, Johannes said, adding that the new land areas would be used to build new townships similar to Kelapa Gading in North Jakarta and Serpong in Tangerang, both developed by the company.
'We've targeted the Bandung [township] to finish by 2015. We already have 190 hectares, and that is close to our target,' Johannes said.
'We will acquire the land in Bandung by ourselves. As for the acquisition of land in South Jakarta, we will form a joint venture, if possible,' Johannes said.
Summarecon has set aside Rp 1.5 trillion in capital expenditure for 2013. Part of the funds will be used to build three new hotels. One of the hotels will be a 3.8 hectare five star hotel to be operated by Swiss-based Mövenpick hotels and resorts, located in Jimbaran, Bali, targeted to be operational by the first quarter of 2015.
'Bali is an amazing tourist destination, especially with the addition of the new airport as well as the new highway,' Johannes said.
Another two hotels will be operated by Harris budget hotels, located in Kelapa Gading and Bekasi, West Java, hoped to be opened at the second quarter of 2014.
In 2012, Summarecon booked a total income of Rp 3.46 trillion, up 57 percent from 2011, while its net profit rose by 104 percent to Rp 792 billion from Rp 388 billion in 2011. (asw)
