JAKARTA (TheInsiderStories) – A property developer, PT Modernland Realty Tbk (IDX: MDLN) and South Korea’ Lotte Engineering and Construction formed a joint venture company (JVC) to develop mixed-use property in Jakarta, said the company on Thursday (12/11). Both prepares Rp2 trillion (US$142.85 million) at the project.
It said, the company will own 40 percent at the JVC, PT Lotte Land Modern Realty, while its partner will hold the other 60 percent. The new entity will buy 50,219 square meter of land from Modernland in Jakarta Garden City with worth of Rp802 billion.
“The land purchasing will count in this year’ Modernland marketing sales, which targeting Rp4.38 trillion,” said the CEO William Honoris.
As planned, the Lotte Land will develop high rise apartment, consisted of seven towers and 32 floors. The total revenue of the apartment is estimated around Rp5.4 trillion.
While, Lotte’ chief representative and managing director for Indonesia, Kang Woo Lee said, they chose Jakarta Garden City because of the strategist location, have a good infrastructure and accessibility. Moreover, the property area will be connected to airport toll road and MRT line phase three which will be added value of the city.
The development of the project will be worked in stages with two towers will be released in the middle of 2020 and the next construction will be started in 2021. Going forwad, Lotte Land will not only develop Jakarta Garden City but also eyes other cities in Indonesia to build other townships.
Earlier, Lotte and other local partner, Vasanta Group, has developed Vasanta Innopark in Bekasi, West Java, with an investment value of $300million. Vasanta Innopark Bekasi is a town project on 100 hectares land. Beside Lotte, Japan investor had been interested to invest in the project.
Beside construction and retail, Lotte Group also wants to develop retail sector. The company looking to expand its retail business through Lotte Mart.
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