Foreign buyers eye local properties<\/p>\n
JAKARTA (JP): International fund managers from Europe, North
\nAmerica, Australia and the United Arab Emirates are lining up to
\nbuy cheap properties in crisis-hit Asian countries, including
\nIndonesia.<\/p>\n
Bayu Utomo, associate director of Procon Indah and Agus
\nKustandi, manager of sales and investment for the firm of
\nproperty consultants said yesterday that fund managers had so far
\ntargeted properties owned by cash-strapped companies.<\/p>\n
They said that by and large, fund managers, who have allocated
\nat least US$300 million to buy property in Southeast Asia, are
\nstill waiting for the right time to enter the market.<\/p>\n
They could not give details of the funds earmarked for
\nindividual countries in the region, but expected fund managers to
\nfocus particularly on Indonesia, Malaysia and Thailand.<\/p>\n
\"Gross funds of around US$300 million are now ready to be
\ninvested in property in these countries,\" he said.<\/p>\n
Agus said that most fund managers who had made inquiries about
\nIndonesia had expressed interest in purchasing property in
\nstrategic business areas along Jl. Sudirman, Jl. Thamrin and Jl.
\nRasuna Said, known locally as the golden triangle.<\/p>\n
\"They only want to buy property in the central business
\ndistrict,\" Agus said.<\/p>\n
Bayu added that most foreign fund managers had shown a
\npreference for properties currently occupied by multinational
\ncorporations in the golden triangle area.<\/p>\n
\"Foreign funds managers believe that multinational
\ncorporations who become the main tenants of properties in the
\narea will not relocate business to other areas of Jakarta,\" he
\nsaid.<\/p>\n
However, analysts said that a lack of legal certainty
\nsurrounding property ownership by foreigners in Indonesia would
\npose a problem for the fund managers. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-buyers-eye-local-properties-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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