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Japanese developer buys Neo Soho Mall from Podomoro
Japanese real estate developer Hankyu Hanshin Properties Corporation has acquired Neo Soho Mall in West Jakarta from PT Agung Podomoro Land.
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Jakarta's Neo Soho Mall is pictured in an undated handout photo. (Hankyu Hanshin Properties Corporation/-)
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apanese real estate developer Hankyu Hanshin Properties Corporation has acquired PT Agung Podomoro Land’s Neo Soho Mall in West Jakarta.
Morotomi Ryuichi, president of Hankyu Hanshin Properties Corporation, said the firm would integrate the operation and management of Neo Soho Mall with that of the nearby Central Park Mall, which it acquired in September of last year.
“Hankyu Hanshin Properties Corporation will take the lead in the management of [Neo Soho] by adapting and utilizing our real estate business know-how, thereby enhancing the value of [the mall] and building a foundation for leasing businesses in the Southeast Asia region,” he said in a statement issued on Wednesday, a day after the acquisition.
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Hankyu Hanshin Properties Corporation took control of the mall by buying ownership of the property from Agung Podomoro Land subsidiary PT Tiara Metropolitan Indah through its Indonesian arm, PT NSM Assets Indonesia (NSMAI). Hankyu Hanshin Properties Corporation now holds a 71.4 percent stake in NSMAI, while PT Tiara Metropolitan Indah controls the remaining 28.6 percent.
Agung Podomoro Land recorded Rp 1.87 trillion (US$120.2 million) in revenue in the first half of this year, a 15.15 percent year-on-year (yoy) decline from Rp 2.2 trillion.
The firm posted a loss of Rp 103.3 billion in the first half, down from the Rp 383.4 billion loss recorded in 2022.
Agung Podomoro Land spokeswoman Justini Omas said in a statement on Sept. 1 that this displayed one of the positive outcomes of the company’s initiative to improve its business efficiency.
“This has been done to keep Agung Podomoro’s business fundamentals solid amid the economic situation and consumer purchasing power in the property sector, which is not strong yet,” she said.
Next year will be a transformative time for the property market as it is expected to see higher transaction volumes on the back of stabilizing interest rates, said Christopher Pilgrim, managing director of Colliers Asia Pacific Global Capital Markets, as reported by Singapore Business Review in August.
“2023 has been one of the most volatile in recent history in terms of global interest rate rises and inflation, challenging for both debt and equity investors across real estate asset groups,” Pilgrim said.
Read also: Office occupancy rate in Jakarta dips as more supply is available, JLL says
Hankyu Hanshin Properties Corporation has invested in residential condominiums outside of Japan since 2015 and currently has a portfolio of more than 26,000 units in five Southeast Asian countries.
The company entered the commercial real estate leasing business in Indonesia through a partial acquisition of two properties, the Plaza Indonesia Complex and fX Sudirman, both of which are landmark multipurpose buildings in Jakarta that are easily accessible by MRT.
Furthermore, the property company has been participating in the operational management of the Sinarmas MSIG Tower, the Bakrie Tower and the Luminary Tower office buildings along with local partners since January.
