JAKARTA (TheInsiderStories) – Pollux Properties Ltd., the holding company of PT Pollux Properti Indonesia Tbk (IDX: POLL) has controlled Stirling Fort Capital Pte. Ltd., after acquiring 49.99 percent the Singapore-based investment firm. The additional acquisition value was recorded at S$300,000.
The CEO of Pollux, Nico Purnomo Po, says that the transaction was carried out on Oct. 7, 2020. He stated, that with this acquisition, his company will have 100 percent stake in Stirling, the fund managers owned by Chan Kah Wai, Elwyn, and Chia Yew Nguan.
“Stirling Fort Capital will become a subsidiary of the Group with full ownership after this acquisition is complete,” he told in an information disclosure on the Singapore Stock Exchange, on Monday (10/12).
The investment manager was founded on April 13, 2014 and has net assets around S$829,287 as of March 31, 2020. Stirling obtained a license as an investment manager company from the Monetary Authority of Singapore on June 24, 2015.
While Pollux owned by a businessman family from West Kalimantan, Po Sun Kok. He is an Indonesian entrepreneur and philanthropist who was born in Sambas, West Kalimantan and served as president commissioner of Pollux Properti Indonesia since 2018. Po is the son of Po Sun Kok.
After years of playing in Singapore, the Po family finally built property in Indonesia. Some of the Pollux property projects in Indonesia are Park Residences Kovan, Metro Loft, Pavilion Square, and Golden Park Residences. Po’ first property is Paragon City, which consists of a Mall and a Hotel.
The group also has completed Meisterstadt, also known as Pollux Habibie, a real estate project in Batam Center, Riau Islands, in collaboration with the family of the late President BJ Habibie.
Recently, Moody’s Investors Service says that the pandemic-led consumption shock will drive economic contraction and hurt demand across all segments of Indonesia’ property sector over the next six to 12 months. This will creating pressure on rated developers’ credit metrics, said the agency in their latest report.
“We expect weak retail sales will hurt occupancy and retail property rents, while oversupply continues to constrain earnings in the office segment and industrial land sales fall as companies reduce capital spending,” says Jacintha Poh from Moody’s.
She continued, “The residential segment should perform relatively better, given developers’ willingness to cut prices and the potential easing of rules for foreign buyers. Demand will be the strongest for housing projects priced at IDR1 billion or lower.”
In this environment, marketing sales will broadly decline in 2020, with the aggregated marketing sales of Moody’s six rated developers falling 25 percent from 2019 figures. This slowdown in marketing sales, along with the revised accounting standard for revenue recognition, now based on handover instead of percentage of completion, will drive a decline in earnings, causing rated developers’ leverage and interest coverage to weaken in 2020 – 2021 from 2019 levels.
For most developers, liquidity will weaken over the next 12 months because of declines in operating cash flow and upcoming debt maturities. While, JLL reported, the leaders of Corporate Real Estate (CRE) in Asia Pacific are optimistic about their business and recovery plans amid the impact of the ongoing pandemic.
At least nine out of ten correspondents believe that efforts to reduce the impact of COVID-19 will be successful and have confidence in the ability of their resources to cope with the current crisis. The majority of them also expect that the number of property assets that are maintained will remain the same or even increase.
According to JLL, CRE leaders are moving confidently forward in remodeling their new, modern offices by prioritizing employee health and well-being, and leveraging technology in their investment plans. The leaders are very confident about their future business prospects. Nearly 80 percent believe they have the right property company service partner to advise on future steps and 70 percent believe in the government’s ability to address future risks.
These CRE leaders demonstrated a high level of satisfaction with the effectiveness of their business continuity planning and 88% rated their plans as effective, if not very effective. While most (76 percent) of CRE leaders in Asia Pacific predict a moderate or reasonable rationalization (expansion or decline) impact on their real estate portfolios due to COVID-19, not all share the same view.
Those in Australia and Hong Kong are more focused on stable rationalization while leaders in India anticipate rationalization that is massive and rapid. Despite this difference, half of all CRE leaders believe the volume of their portfolio will remain the same over the medium to long term. Two-thirds of CRE leaders (63 percent) also expect their total location to remain unchanged.
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