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Jakarta Post

Lippo says Meikarta project to be fully back on track

  • News Desk

    The Jakarta Post

Jakarta   /   Wed, March 13, 2019   /   10:33 am
Lippo says Meikarta project to be fully back on track An aerial photo taken on Tuesday shows the construction of apartment buildings at Meikarta in Cikarang, Bekasi regency, West Java. (Antara/Hafidz Mubarak A. )

The Lippo Group has expressed confidence that the Meikarta township in Bekasi, West Java, which was under a spotlight because of a high-profile corruption case, would soon get back on track as the group was committed to pouring fresh money into the project.

The group says the commitment to Meikarta was part of its business “revitalization” plan following a recent reshuffling of its boards of directors and commissioners.

PT Lippo Karawaci chief executive officer (CEO) John Riady said he was not ready to explain the details of the plans for the Meikarta project, including the funds that would be disbursed for it. “What is sure is that the Meikarta development will be 100 percent completed,” John said on Tuesday as reported by kontan.co.id.

Previously, the Lippo Group announced that the company would attempt to raise US$1.01 billion, $730 million of which was expected to come from the rights issue of PT Lippo Karawaci, while another $280 million was expected to come from asset divestment.

The Riady family, through PT Inti Anugerah Pratama, would act as a standby buyer for the corporate action. “The rights issue is to be completed in the first half of this year,” John said, adding that the divestment process was expected to be completed in the second half.

He said PT Lippo Karawaci would sell Mall Puri in West Jakarta to the Lippo Malls Indonesia Retail Trust, whose agreement had been signed on Monday.

John said if the fundraising was successful, Lippo would carry out expansion and repay some of its debts, including buying back up to $150 million of its $410 million in senior notes that would mature in 2022 and $425 million in senior notes that would mature in 2026.

Apart from using the proceeds to carry out buyback and to finance the expansion plan, they would also be used to pay interest on the company’s debt.

John said Lippo Karawaci planned to boost the performance of its three business segments – property, retail business and healthcare services.

On property, he added, the company would no longer focus on luxury apartments, but it would also develop residences for middle-income people. (bbn)