PT Sinarmas Asset Management listed Simas Plaza Indonesia real estate investment trust (REIT) products with a total portfolio worth US$730.39 million - Photo: Privacy

JAKARTA (TheInsiderStories) – Indonesia’ investment management company, PT Sinarmas Asset Management listed Simas Plaza Indonesia real estate investment trust (REIT) products with a total portfolio worth Rp10.4 trillion (US$732.39 million) on Indonesia Stock Exchange (IDX), Thursday (07/4).

The total unit of REIT with XSPI coded is 20.80 billion units with an initial value of Rp500/unit with yields of 6-8 percent a year. The offer period has been carried out on June 19-21, distribution to investors took place on July 3 and listed on IDX on July 4, 2019.

The underlying of REIT assets is 95.37 percent shares of PT Plaza Indonesia Realty Tbk (IDX: PLIN) and 100 percent shares of PT Sarana Mitra Investama, which owns shares in PT Plaza Lifestyle Prima, management of FX Sudirman mall. The reason for choosing Plaza Indonesia assets is because of several considerations, such as an iconic asset in the center of Jakarta.

Sinarmas Asset Management’ director Jamial Salim stated, the issuance of REIT products was carried out to make long-term investments in portfolio assets, real estate assets and others that could provide a relatively stable income distribution.

“The launch of this investment product can add investment products in the stock exchange,” Salim told reporters at the IDX Building in Jakarta.

REIT Simas Plaza Indonesia is a collective investment contract that is used to raise funds from public investors to be invested in real estate assets. This REIT is expected to provide stable and sustainable income distribution and growth in the principal investment.

Later, the investment proceeds will be shared with the unitholders of 100 percent of the income obtained by the Simas Plaza Indonesia REIT in one financial year after deducting taxes and other fees every six months.

As of March 2019, referring to PLIN financial reports, the Sinar Mas Group through PT Bumi Serpong Damai Tbk (IDX: BSDE) has a majority stake in Plaza Indonesia, which is 40.03 percent. Other shareholders, namely PT Indonesia Paradise Property Tbk (IDX: INPP) 36.41 percent, Rosano Barack 4.90 percent, public 4.23 percent, and the rest treasury share 14.43 percent.

The share ownership value of Bumi Serpong at Plaza Indonesia is 1,421,195,766 so that if multiplied by the average PLIN share price in this Thursday trade of Rp2,913/share, the Sinarmas Asset Management ownership value in PLIN reaches Rp4.14 trillion.

This is the third REIT to be listed on the IDX after the two previously belonged to PT Ciptadana Asset Management: the first, REIT coded XCID released in 2012 with Solo Grand Mall portfolio assets; second, REIT coded XCIS which was released January 29, 2019, with portfolio assets of Hotel Padjajaran Suites.

US$1=Rp14.200

Written by Lexy Nantu, Email: lexy@theinisiderstories.com