JAKARTA (TheInsiderStories) – The company owned by local tycoon, The Ning King, PT Mega Manunggal Property Tbk (IDX: MMLP) will complete the divestment of four warehouses, said the company on Friday. The issuer is estimating to obtain net funds of Rp1.1 trillion (US$74.32 million) from the asset sales.
The four warehousing assets that will be managed into a private investment fund are located around Great Jakarta. The total net assets of the warehousing assets are more than 163 thousand square meters and the occupancy rate reached 96 percent.
Around Rp350 billion of the funds will injected to a Indonesian logistics property funds with Singapore’ Alpha Investment Partners Ltd., and PT Asuransi Jiwa Manulife Indonesia. The management said, after the assets sale, the company still hold 25 – 30 percent of shares at the four units.
Last June, the third parties have entered into a new venture, which will focus on Indonesia’ fast-growing logistics property sector, comprising Keppel Capital Pte. Ltd., MMP Indonesia Logistics Fund Private Ltd., and co-investment capital from Manulife Financial Corp. The venture has an initial target size of $200 million.
Alpha, will become the investment manager of the venture, while Mega Manunggal, as a strategic advisor to Alpha and property manager of the venture’ logistics properties. The new venture has received initial capital commitments of approximately $93 million from the partners, including Asuransi Jiwa Manulife Indonesia.
Alvin Mah, CEO of Alpha said, “With Indonesia’ growing middle-class population driving the rapid growth in consumption and e-commerce, coupled with the limited supply of modern logistics facilities in Jakarta, the Indonesian logistics property sector is seeing strong demand. We are very happy to partner with two industry leaders, Manulife and MMLP, for this Venture.”
The company is part of the Argo Manunggal Group, which was founded by Ning King, one of the richest people in Indonesia. His assets are estimated around $650 million. He is known have many property companies across the country like PT Bekasi Fajar Industrila Estate Tbk (IDX: BEST) and PT Alam Sutera Realty Tbk (IDX: ASRI).
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