SINGAPORE: CapitaLand has entered into a joint venture agreement (JV) with a subsidiary of Credo Group (CG) to develop an integrated development in Central Jakarta, with both companies each holding a 50 per cent stake in the venture.

The integrated development, CapitaLands first in Indonesia, will comprise a Grade A office tower, mid- to high-end residential units, serviced residences and supporting retail space, spanning a total gross floor area of more than 40,000 sqm. Construction is expected to commence in 2015 and end in 2018, and the total development cost is estimated at S$220 million, CapitaLand said on Monday (Nov 17).

Under the agreement, the JV will acquire from CG a 1-hectare site located within the central business district of Jakarta.

Said Mr Lim Ming Yan, President and Group CEO of CapitaLand: The Indonesian property market is bolstered by sound social and economic fundamentals and we see significant room for growth. In fact, Jakarta was one of the fastest growing cities in the world for office and prime residential sectors in 2013, and this uptrend is expected to continue with a rising middle-class population.

"With a strategically located site, positive market demand and a reputable local partner, we are confident this project will be well-received by the market.

The JV is not expected to have any material impact on the companys net tangible assets or earnings per share for the financial year ending Dec 31, 2014, CapitaLand said.

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CapitaLand inks joint venture for integrated development at the heart of Jakarta

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