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ublicly listed developer PT Bakrieland Development (ELTY) is expecting to finalize the sales of two of its assets worth Rp 3 trillion (US$311 million) to local tycoon Hary Tanoesoedibjo, before the end of the year.

The company will divest its entire 99.99 percent stake in toll road company PT Bakrie Toll Road as well as selling all of its 50 percent stake in PT Lido Sarana Prima, the developer of Lido Lakes Resort and Conference.

ELTY president director Ambono Januarianto said in Jakarta on Tuesday that two weeks ago his company had signed an agreement on the sales of the two assets to Hary Tanoesodibjo, the president director of the media group Media Nusantara Citra (MNC).

“The toll road enterprise value is more than Rp 2 trillion and Lido’s is less than Rp 1 trillion,” Ambono said on Tuesday, declining to reveal the real value of the transactions of the divestment.

According to Ambono, ELTY’s selling of the assets is part of the company’s program to refocus on its main business of property development and to divest assets returning low yields.

Bakrie Toll Road currently holds five toll road concession permits; Kanci-Pejagan, Pejagan-Pemalang, Pasuruan-Probolinggo, Cimanggis-Cibitung and Ciawi-Sukabumi. Out of the total of five projects, only 35 kilometers of Kanci-Pejagan is finished and has been operated since 2010.

Kanci-Pejagan, connecting Cirebon and Brebes, is included in the national Trans Java toll road program, which will connect Jakarta to Surabaya in East Java. However, the Trans Java toll road has yet to be fully completed.

Bakrieland has suffered, because after two years, it has not enjoyed a good return from the toll road project. The company faces difficulties repaying the debts it incurred to finance its projects.

ELTY obtained syndicated loans of Rp 1.3 trillion from Bank Negara Indonesia, Bank Rakyat Indonesia and several regional banks for Kanci-Pejagan, according to its financial report.

The company also obtained loans from shareholders of Rp 423 billion for the project.

“We spent Rp 158 billion a year to pay the interest rate only [for bank loans]. Meanwhile, the contribution from Kanci Pejagan is only about Rp 100 billion. Our expansion programs will be disrupted if we keep using our money to ‘subsidize’ the toll road,” Ambono said.

According to Ambono, the company will use funds to be raised from the sale of Bakrie Toll Road to pay loans to creditors related to the projects.

He hoped that other parts of the funds raised could be used to finance the company’s other projects.