Cacuk leads real estate sale in Singapore

Cacuk leads real estate sale in Singapore

SINGAPORE (Bloomberg): Cacuk Sudarijanto, chairman of Indonesia's bank restructuring agency (IBRA), meets with potential buyers in Singapore Friday (today) of the US$7.5 billion of real estate under the agency's control.

Cacuk, hired by Indonesia last year to speed the sale of assets, holds talks with executives of City Developments Ltd., the Government of Singapore Investment Corp. and about 30 other investors, said an official of the Indonesian Embassy.

The presentations are part of the Indonesian Bank Restructuring Agency's drive to recoup the $86 billion cost of fixing Indonesia's banking industry after Asia's financial crisis of 1997 and 1998. The agency owns assets across the Indonesian economy, including a golf course on the island of Bali, seaside industrial parks and prime Jakarta office space.

"This is the third time that IBRA has come over to Singapore to sell its assets," said Trijono Marjono, an economic officer at the embassy in Singapore. "Most of the properties are located in Indonesia."

Real estate makes up 24 percent of the Rp 112 trillion ($14 billion) of assets seized by the Indonesian government from owners of failed Indonesian banks against debt they owe the government, IBRA officials said. The agency also controls about Rp 32.5 trillion of real estate-related loans.

Other investors at the presentations include Keppel Land Ltd., Raffles Holdings Ltd., United Overseas Land Ltd. and Kim Eng Securities, all of Singapore. Investors from outside of Singapore include the Royal Bank of Scotland Plc.

In addition to real estate, assets for sale include factories plantations, Trijono said.

Other potential assets may include part of the PT Batamindo Investment Corp., developer of Batamindo industrial park on Batam, an Indonesian island south of Singapore, and Bintan Beach International Resort on the adjacent island of Bintan, documents suggest.