Publicly listed property developer PT Jakarta Setiabudi Internasional Tbk (JSPT) and its affiliated firm namely PT Rasuna Setiabudi Raya (RSR) plan to build and develop apartment project dubbed Setiabudi Rasuna Project.
In a public announcement to Indonesia Stock Exchange (IDX) today, the project, located at Jalan Karabela Selatan, Karet, Setiabudi, South Jakarta, on the land of 19,775 meters square, is hopefuly to balance its investments between hotels and housings in a bid to boost financial growth.
Under the agreement signed by both companies, Jakarta Setiabudi has commited to spend Rp109.45 billion of total cost for the project.
To develop the project, Jakarta Setiabudi is obliged to buy 2,430 meters square of land worth Rp30.13 billion and 17,345 meters square of land owned by RSR amounting to Rp215.08 billion.
Jakarta Setiabudi has to allocate Rp79.32 billion of cost before selling the apartment units to customer.
Following the land acqusition, Jakarta Setiabudi is also obliged to manage all documents required to build the apartment, manage and supervise development and marketing, appoint contractors, suppliers, and consultants.
Jakarta Setiabudi has rights to set up marketing strategy for the project and provided financing of Rp79.32 billion to develop Setiabudi Rasuna Project.
In return, net income from selling apartment units will be proporsionally distributed to Jakarta Setiabudi of 33.7% and the remaining is for RSR.
RSR is 57.51% owned by PT Jan Darmadi Investindo who is also controlling share holder in Jakarta Setiabudi.
Mr. Jan Darmani itself holds 0.57% stakes in Jakarta Setiabudi and another 5% in RSR. PT Bank Pan Indonesia Tbk (Bank Panin) controls 15.63% stakes in Jakarta Setiabudi, Noord-Amerikaanse Financierings Maatschappij BV Belanda holds 9.52%, UBS AG Singapore Non-Treaty Omnibus holds 12.01%, and public share holders own 4.76%.
According to the announcement, Jakarta Setiabudi will use a maximum of US$50 billion of 8 year loan facility, providing an annual interest rate of 10.5%, from PT Bank OCBC NISP Tbk.
The property development will drawdown Rp100 billion. In December 2009, Jakarta Setiabudi posted Rp958.10 billion of sales and operating revenue, a slight increase compared to the previous year of Rp924.05 billion.
Operating profit rose from Rp152.93 billion in December 2008 to Rp211.63 billion. The company booked Rp79.31 billion of net profit in December 2009, a reversal from net loss of the previous year worth Rp55.28 billion.
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