Bakrie Land plans to issue rights<\/p>\n
JAKARTA (JP): PT Bakrie Land Development, a property arm of
\nthe Bakrie business group, plans a rights issue later this year
\nto strengthen the company's capital structure.<\/p>\n
Iwan Hendradi, the firm's president, said here yesterday the
\ncompany expected shareholders to approve the plan within the next
\ntwo months.<\/p>\n
Hendradi, a former managing director of PT Catur Swasakti
\nUtama, said the limited public offering would raise fresh funds
\nto finance new projects.<\/p>\n
The company's assets are currently Rp 250 billion (US$104.16
\nmillion) and are expected to increase to between Rp 3 trillion
\nand Rp 4 trillion in the next three years.<\/p>\n
\"A lot of Bakrie Land's assets have not been optimally
\nexploited yet,\" he said after the company's shareholders'
\nmeeting.<\/p>\n
Bakrie Land was Elang Realty before being taken over in March
\nby Bakrie Capital Indonesia, a Bakrie Group holding company.<\/p>\n
Bakrie Capital bought a 70 percent stake in Elang Realty for
\nRp 150 billion.<\/p>\n
He said Bakrie Land would buy property projects of other
\nBakrie subsidiaries, Bali Nirwana Resort in Bali, Bakrie Tourism
\nResort in Lampung and Taman Rasuna in Jakarta.<\/p>\n
\"We want to make Bakrie Land Development as strong as any
\nother property firm in the coming years,\" he said.<\/p>\n
He said the company also planned to buy property projects from
\nother companies. \"We are considering buying other projects like
\nwe did with Gelael supermarket recently,\" he said.<\/p>\n
Bakrie Land and PT Goro Batara Sakti set up a joint venture
\nMonday called PT Bakrie Goro Land. It is 51 percent owned by
\nBakrie Land Development and 49 percent by Goro Batara Sakti.<\/p>\n
The new joint venture also signed an agreement Monday to form
\nPT Gelael Batara Bakrie to operate the Gelael supermarket, owned
\n60 percent by Bakrie Goro Land and 40 percent by Gelael.<\/p>\n
The joint venture will provide land and infrastructure for
\nGelael's new outlets.<\/p>\n
Hendradi said that this year Gelael Batara Bakrie expected to
\nbuy about seven more properties for PT Goro Batara Sakti in
\nJakarta.<\/p>\n
Hendradi said Bakrie Land posted a total net loss of about Rp
\n200 million in the first quarter of 1997, down from first quarter
\nlosses of around Rp 1 billion last year.<\/p>\n
\"We expect to register a profit this year,\" he said.<\/p>\n
He said the firm booked a total revenue of Rp 2.1 billion in
\nthe first three months of 1997 and net expenses of Rp 2.3
\nbillion. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-land-plans-to-issue-rights-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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