The developer, PT Intiland Development Tbk (IDX: DILD) plans to divesting its non-core assets with total values of Rp5 trillion (US$357 million) to reduces the debt portion - Photo by the Company

JAKARTA (TheInsiderStories) – The developer, PT Intiland Development Tbk (IDX: DILD) plans to divesting its non-core assets with total values of Rp5 trillion (US$357 million) to reduces the debt portion. In total, the issuer has total debt around Rp5 trillion and aimed to lowering the portion to around Rp3 trillion.

Archied Noto Pradono, the company’ director, said that apart from selling its non-core assets, the company will also accelerate the inventory asset sales and boost the pre-sale of landed houses. In the third quarter of 2020, the real estate firm posted a revenues from non-core assets up to Rp1.3 trillion and use it for debt repayment and working capital.

He added, Intiland also has an inventory around Rp2 trillion that is ready to be offers like the Regatta Apartment. If realized, he revealed, the transaction would have a value of Rp650 billion. Apart from that, the issuer also provides industrial land sales in Batang Industrial Zones in Central Java.

“In 2021 we also have plans to sell landed houses, high rise, and non-core assets with target up to Rp2 trillion,” said Pradono.

In this year, Intiland is also preparing a scheme to pay off the company’ bonds which will mature in 2021. The company prepared two settlement options for the debt refinancing with loans from the bank or re-issue the notes. The bond that will mature this year worth of Rp 162 billion. The bonds were issued in 2016 and will mature on June 29, 2021.

Because of the low demands, the developer has stopped the high-risk building and focused to build landed-houses. According to the CEO, Hendro Gondokusumo, his company is always dynamic in following the market developments. Over the past few years, the builder has developed apartment by taking the momentum of railroad connectivity projects.

He stated, the company will develop landed houses in several land bank lands owned by the company in the Jakarta and Surabaya areas in the 24 hectares of land. Intiland founded by Hendro Santoso and was established in 1983.

US$1: Rp14,000

Written by Editorial Staff, Email: theinsiderstories@gmail.com