Sinarmas Land Ltd., a Singapore-based investment firm under Sinar Mas Group, has acquired three property companies in Indonesia worth Rp347.76 billion (US$24.84 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Sinarmas Land Ltd., a Singapore-based investment firm under Sinar Mas Group, has acquired three property companies in Indonesia worth Rp347.76 billion (US$24.84 million), the management announced on Feb. 24. These companies are PT Bhumindo Repenas Jayautama, PT Cibubur Permai Lestari, and PT Gunung Indah Permai Lestari.

According to the director, Robin Ng Cheng Jiet,the company acquired Bumindo Repenas for Rp129.2 billion, Cibubur Permai of Rp145.33 billion, and Gunung Indah Permai for Rp73.22 billion. The transaction is paid in cash using internal cash. Apart from this transaction, the developer has added share ownership in the unit, PT Bumi Serpong Damai Tbk (IDX: BSDE) from 59 percent to 60.07 percent.

With the addition, Sinarmas Land’ share in PT Duta Pertiwi Tbk (IDX: DUTI) also improved to 53.2 percent from the previous 52.25 Percent. Furthermore, the real estate firm also increased shares in an investment company, PT Serpong Mas Media, with a transaction value of Rp82.52 billion.

In addition, the company also increased its share ownership in PT Bhineka Karya Pratama from 81.32 percent to 95.13 percent. Then at PT Simas Tunggal Center to 92.56 percent from initially 92.28 percent and in PT Sinar Mas from 68.59 percent to 69.65 percent. The company carried out a series of transactions since July 1 to Dec. 31, 2020.

Last year, Sinarmas Land joined wit Japan Overseas Infrastructure Investment Co., (JOIN) formed JOIN SML Investment Partners Pte. Ltd. Both parties has injected fresh capital $2 million in the new entity with 50:50 ownerships. The group’ CEO, Michael Widjaja commented, “This JVC focuses on infrastructure projects and transit-oriented developments. Its also expected to contribute positively to the development of our township.”

JOIN is an investment institution sponsored by the Japanese government and private sector. The company was founded in October 2014 and aims to encourage Japanese companies to leverage their knowledge, technology and experience in the infrastructure sector to expand outside Japan.

So far, the company has penetrated Brazil, Malaysia, Myanmar, India, the Republic of Palau, Vietnam, United States, Russia, Thailand and Canada. In Indonesia, JOIN has invested in seven projects from 2016 – 2020, consisting of two brown and five green field projects. With the Sinarmas Group, the firm collaborated on the BSD City Mixed-use project in 2016.

Participating in this project are Mitsubishi Corporation, Nishi – Nippon Railroad, Hankyu Hanshin Properties and Keikyu. While, Bumi Serpong Damai established a strategic partnership with Mitbana Pte. Ltd., a joint venture between Mitsubishi and Singapore’ Surbana Jurong Pte. Ltd. Both aimed to build a transit-oriented development project on an area of ​​more than 100 hectares with a smart city concept in Serpong, Tangerang.

Cooperation with Mitsubishi Corporation is carried out through the development of The Zora area in BSD City, which is an exclusive residential zone with leading smart-home technology from Mitsubishi. In another township, Sinarmas Land is working with Citra Mas to appoint Surbana in developing the concept of the Eco Digital Project master plan in Nongsa, Batam, Riau Islands, covering an area of ​​62 hectares.

While, the trading company from Japan, Mitsubishi has a comprehensive Urban Development Group in-house team in real estate, infrastructure, leasing and trade banking worldwide. This working group has a mission to support large-scale and value-added urban development for social and environmental needs.

In 2020, Sinarmas Land‘ revenues dropped by 22.4 percent to S$910.47 million ($698.75 million) from the previous year of S$1.17 billion. The net profit also fell 24.8 percent on an annual basis to S$125.2 million.

The company is still pursuing a cautious optimistic strategy in 2021. The two units, Bumi Serpong Damai and PT Puradelta Lestari Tbk (IDX: DMAS) are targeting the marketing sales of Rp7 trillion and 2 trillion, respectively, in this year.

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