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isted property developer PT MNC Land is seeking loans to complete the acquisition of PT Bali Nirwana Resort, the company behind a tourism complex in Tanah Lot, Bali.

MNC Land director Daniel Yuwono said the company would need around Rp 1 trillion (US$89.84 million) to acquire sole ownership of Bali Nirwana, which was previously owned by PT Bakrieland Development.

'€œThe company will use funds from the recent rights issue and seek loans to plug the remaining financial needs,'€ Daniel said on Wednesday.

MNC Land, which is controlled by tycoon Hary Tanoesoedibjo, recently raised net cash of Rp 2.18 trillion from selling new shares in a rights issue.

A report submitted to the Indonesia Stock Exchange (IDX), outlined that the company purchased mandatory exchangeable bonds and mandatory convertible bonds '€” related to the acquisition of Lido Resort, another property previously owned by Bakrieland '€” with Rp 1.39 trillion.

According to the report, MNC Land used some of the money for working capital, which left Rp 759 billion remaining from the rights issue.

In an announcement made public on Wednesday, MNC Land would need Rp 1.71 trillion in total to finance the acquisition of Bali Nirwana.

Under the acquisition deal, the takeover will be conducted in three stages. The first stage involves a sale agreement, which was signed on July 25 this year, regarding the purchase of 19.09 percent in Bali Nirwana at a cost of Rp 326.44 billion.

The second agreement signed on Aug. 2 covered the purchase of a 25 percent stake in Bali Nirwana, with a price tag of Rp 427.54 billion.

The funds needed for the two agreements would be covered by the funds remaining from the rights issue, according to Daniel, however, it would need the approval of shareholders in a meeting slated for Thursday (Sept. 19).

For the third stage of the deal, MNC Land signed an agreement on Aug. 2 with its related entity PT Pratama Prima Investama, which agreed to purchase 55.91 percent in Bali Nirwana.

MNC Land has 12 months to takeover the stake in Bali Nirwana from Pratama Prima. Given that the total value of Bali Nirwana'€™s shares is Rp 1.71 trillion and the two previous stages cost Rp 753 billion, MNC Land will need around Rp 956 billion for the 55.91 percent stake.

MNC Land said the hotel business has good prospects supported by Bali Nirwana'€™s strategic location in Bali.

Bali Nirwana reported Rp 62.47 billion in revenue in the first five months of the year. It booked a net loss Rp 37.85 billion in January to May period.

The company also reported a net loss of Rp 206.66 billion as of December 2012, a business setback compared to a Rp 33.22 billion in net profit in 2011. Lower revenue in 2012 '€” Rp 157.77 billion compared to Rp 189.5 billion in 2011 '€” contributed to the loss.

Bali Nirwana'€™s total assets, as of the end of May this year, were worth Rp 824.1 billion.