Indonesia: MNC Land to expand Sukabumi Lido Resort

Indonesia: MNC Land to expand Sukabumi Lido Resort

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Property developer MNC Land, owned by tycoon Hary Tanoesoedibjo, is set to develop a resort with golf courses in Sukabumi, West Java.

The mega project might cost the company around US$2 billion to $3 billion in long-term investment, he told reporters on Tuesday evening.

Hary — CEO for diversified holding company the MNC Group — said that his property business line would commence construction of the Lido resort and golf course project next month.

The company would use the investment to turn 2,000 hectares of land into four and five-star hotels, villas, a theme park and other supporting infrastructure for the leisure business in around 20 to 30 years.

Initially, the project would need around $400 million to finance the construction of the first phase of the resort, which is expected to start commercial operations in 2016.

“We are working alone on the project,” Hary said, adding that he had opened up the possibility for other strategic partners to join the decades-long project.

The MNC Group acquired Lido Resort in a Rp 1.4 trillion ($117.83 million) deal in July last year from British Virgin Islands-based Charlton Group Holdings Ltd.

Bakrieland Development, part of the business conglomerate Bakrie Group, formerly owned shares in Lido Resort.

Bakrieland let go of its shares in Lido Resort — which also includes the resort’s assets PT Lido Nirwana Parahyangan, PT Lido Golf Prima and PT Lido Sarana Prima — to PT Zulam Alinda Sejahtera, before the latter issued exchangeable and convertible bonds through Charlton.

Besides Lido, MNC also concluded the acquisition of Bali Nirwana Resort, the company behind a tourism complex in Tanah Lot, Bali, late last year.

Bali Nirwana Resort was also previously part of Bakrieland, which is owned by politically wired tycoon Aburizal Bakrie, who is now Hary’s confidante in supporting presidential candidate Prabowo Subianto.

The company spent around Rp 1 trillion on acquiring the Bali resort. The funds for both the resort and the Lido resort were both sourced from rights issues.

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