Indonesia’s Sinarmas Unit Publishs REITs US$737M

Salah satu pabrik milik Sinarmas - Photo by Golden Agri Resources

JAKARTA (TheInsiderStories)PT Sinarmas Asset Management issued a Real Estate Investment Fund Collective Investment Contract (KIK-DIRE) with underlying shares of PT Plaza Indonesia Realty Tbk (IDX: PLIN). The total value this issuance investment instrument is IDR 10.40 trillion (US $ 37.59 million).

Based on information released today, the total investment units for this DIRE are 20.80 billion units. The offering period will be June 19-21 and will be listed on Indonesian Stock Exchange on July 4.

DIRE can be interpreted as a collection of investor funds that will be invested in property assets either directly by buying buildings or indirectly by buying shares / bonds of property companies.

This instrument has an obligation to invest at least 80% of its managed funds to a property where 50% must be in the form real direct estate assets.

Issuance of REITs in Indonesia is arguably still quiet compared to other types of KIK investment instruments.

This is the third DIRE to be listed on the IDX, after the two previously belonged to PT Ciptadana Asset Management, namely the first XCID coded DIRE released in 2012 with Solo Grand Mall portfolio assets and two XCIS DIRE released on January 29, 2019 with portfolio assets at Hotel Padjajaran Suites .

Written by Willy Matrona, Email: