PT Pakuwon Jati Tbk ("PWON") is pleased to announce the acquisition of 67.1% of PT Pakuwon Permai ("PP") on 10 October 2014 for Rp.2,343 billion.
PP is the owner of one Superbiock development in Surabaya (Supermal Pakuwon Indah), two standalone retail malls (Royal Plaza mall in Surabaya and Blok M Plaza mall in Jakarta) as well as one serviced apartment (Somerset Berlian in Jakarta).
Mr Alexander Tedja, President Commissioner and founder of Pakwuon Jati said, "We are extremely excited about this acquisition. The prime assets acquired are strategically located within the cities of Jakarta and Surabaya and are well tenanted with strong visitation. In line with our strategy, they also provide a robust and clear pipeline for balanced growth in recurring and development income going forward."
The acquisition immediately increases PWON's retail mall NLA by 53% from 334k sqm to 512k sqm and hotel rooms by 41% from 359 rooms to 506 rooms. Pro forma for the acquisition, PWON's recurring revenue increases by 22% (for the six months ended June 2014).
Going forward, PP's pipeline of diversified projects is in line with PWON's strategy of maintaining a balanced mix of recurring and development income. Supermal Pakuwon Indah is currently constructing Phase 2 and 3, which include a retail mall expansion, 3 condominium towers, an Ascott serviced apartment, a 5-star Pullman hotel and a 3-star Ibis Styles hotel. Upon completion of Phase 2 and 3, Supermal Pakuwon Indah retail mall will be one of Indonesia's largest malls with an NLA of approximately 167k sqm.
The PP acquisition is consistent with PWON's investment and growth strategy, and provides the following benefits:
The acquisition was funded by the net proceeds of the USD200m 2019 bond issued in July of this year.