Through its subsidiary, Reco Indolog Private Limited, prominent global investment firm GIC has raised its stakes in MMLP’s subsidiary PT Mega Khatulistiwa Properti (MKP) from 33.4 percent to 45 percent.

Formerly known as the Government of Singapore Investment Corporation, GIC manages Singapore’s sovereign wealth fund and currently controls more than US$100 billion in assets.

MMLP’s president director Bonny Budi Setiawan recently said that the move was expected to bring in a Rp 1.2 trillion (US$90.3 million) capital injection for a multi-year expansion plan.

To further strengthen its capital, MMLP will offer 3 billion shares equal to 35 percent of its stakes to the public in the near future. The firm is awaiting for approval from the Financial Services Authority (OJK). Its current share price is Rp 100 apiece.

With this step, the firm eyes to generate another Rp 1.5 trillion.

Funds from GIC’s acquisition and rights issuance will contribute to the firm’s capital expenditure (capex), which this year alone amounts to Rp 3 trillion.

The 2017 spending has primarily been earmarked to support the construction of up to four integrated warehouses in Greater Jakarta and Surabaya, covering net leaseable area (NLA) of 190,000 square meters. Carried out by its subsidiary MKP, the development will begin in the near future and finish in 2019.

By that year, MMLP hopes manage 500,000 sqm of NLA in total.

“The expansion is necessary because the demand [for warehouses] continues to grow, while available spaces cannot cope with it,” Bonny told the reporters after the company’s shareholders meeting.

MMLP has provided logistics facilities by leasing integrated warehouses and office spaces since 2010. It currently operates four warehouses in Greater Jakarta, namely in East Jakarta, Bekasi and Depok, with an overall NLA of 163,911 sqm, and serves, among others, multinational consumer goods company Unilever and logistics service provider DHL.

“For now, we are only focusing on our business in Greater Jakarta, but we plan to expand our business to Surabaya this year,” Bonny said.

Since late last year, the firm has been constructing another three integrated warehouses in Bekasi and Cileungsi, Bogor, to cover an NLA of 106,332 sqm by 2018.

Following the company’s initial public offering (IPO) in 2015, MMLP is now 50.1 percent owned by real estate and property agent PT Mega Mandiri Properti, followed by the public (24.95 percent), Singapore-based investment management service company Indies Special Opportunities Private Limited (15.36 percent), Bnymsanv Re Bnym Re Buteo Dende LLC (8.89 percent) and its president commissioner Hengkang Sutedja (0.7 percent).

MMLP’s revenues increased by 7.84 percent to Rp 110 billion last year from 2015. Its profits climbed by 84.85 percent to Rp 122 billion in 2016 from a year earlier.

Meanwhile, MMLP’s consolidated revenues increased by 7.36 percent to Rp 175 billion last year from 2015. Its profits jumped by 250 percent to Rp 399 billion in 2016 from a year earlier.

Its total assets rose by 24 percent to Rp 3.9 trillion in the past year from 2015. (ecn)

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