City Island get credits

City Island get credits

SINGAPORE (Dow Jones): City Developments Ltd. said yesterday it has signed a deal to lend US$7.35 million to its 30 percent owned Indonesian joint venture PT City Island Utama.

City Developments, Singapore's biggest property developer, said the Indonesian company's other major shareholders will also be extending the credit in proportion to their shareholding.

The other major shareholders include Hong Realty (Private) Ltd. and Trade & Industrial Development Pte. Ltd.

The joint venture company PT City Island Utama is the developer of a condominium project known as Oseania Kondominium Resor at Ancol Barat in Jakarta.

City Developments said the loan will bear no interest and will be repaid within one year after the date of the first draw down, or after the loan is no longer required by the various parties.

City Developments said the loan was reviewed by its audit committee and the deal isn't prejudicial to the interests of its shareholders.