MNC Land: 10 year plan for property and infrastructure

MNC Land: 10 year plan for property and infrastructure

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Indonesia’s MNC Group plans to spend billions of dollars to expand its property and infrastructure assets, its chief Hary Tanoesoedibjo said on Tuesday, without specifying exact amounts.

“We have set a 10 year investment plan,” he said, “In our property sector, we plan to expand the Lido and Bali Nirwana. In infrastructure we are working on a couple of concessions, including Pejagan-Pemalang.”

Hary, through his property and infrastructure holding company MNC Land, plans to raise more than Rp 2.2 trillion ($180 million) from the sale of shares in a rights offering this month.

MNC Land plans to sell 1.46 billion shares, or 22.6 percent of the company’s total equity, according to the company prospectus published in Investor Daily on Tuesday.

MNC Land has been aquiring a series of resort projects, including the Lido Resort and Bali Nirwana Resort, both previously owned by the Bakrie Group.

MNC Land has announced plans on a mega-project worth more than Rp 10 trillion, including an integrated entertainment center in Lido, Sukabumi.

It is also buying the majority stake in Bali Nirwana from Pratama Prima Investama, a unit of the Bakrie Group.

Bali Nirwana is the operator of a tourism complex in Tanah Lot, Bali. The Bakrie Group has been selling some of its assets to pay off creditors and re-purchase its crown jewel coal miner Bumi Resources from London-listed Bumi.

MNC Land is also involved in some property businesses.

It is building MNC Media Tower in Central Jakarta, an integrated complex for its media operations, which will cost Rp 1.96 trillion.

The company also plans to inject capital to support the activities of its units, including Swarna Citra Sentosa, which is building MNC Tower Surabaya at a cost of Rp 138 billion.

Another property unit, Investasi Hasil Sejahtera, recently built The East residences and the Oakwood serviced apartments — both in Mega Kuningan, South Jakarta — and the Lotte Shopping Avenue retail arcade in neighboring Kuningan, South Jakarta.

MNC Land is 28.08 percent owned by MNC Investama, 8.35 percent by Hary himself, 31.9 percent by portfolio investor UBS Singapore, 10.15 percent by porfolio investor UOB-Kay Hian, 6.05 percent by portfolio investor ABN Amro Nominees Singapore and 15.48 percent by the public.

Jakarta Globe

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