Duta Anggada Realty to split its shares

JAKARTA (JP): Shareholders of the publicly listed PT Duta Anggada Realty have approved the company's proposal to split the company's shares by reducing the stock's nominal value to Rp 500 from Rp 1,000.

Duta Anggada's President Hartadi Angkosubroto said Thursday that the split would double the number of shares to two billion.

"The split would improve the shares' liquidity," Hartadi said following the company's shareholders meeting.

The company's stock price closed at Rp 2,100 on the Jakarta Stock Exchange (JSX) yesterday. The split will dilute the price by 50 percent.

The shareholders also approved the company's proposal to raise its authorized capital to Rp 1 trillion from Rp 500 billion.

He said the share split and the change in the authorized capital should be approved by the Capital Market Supervisory Board and the Ministry of Justice.

"We hope it will be approved before next month's general election," he said.

Duta Anggada, a listed property arm of the Gunung Sewu Group, owns several office buildings, apartments and shopping centers.

Hartadi said more than 50 percent of the company's revenues came from the operation of offices, 25 percent from shopping centers, 20 percent from apartments, and the rest from retail and hotels.

In 1995, the company booked a net profit of Rp 27.14 billion, down from Rp 30.46 billion in 1994. The net profit for 1996 is estimated to reach Rp 43 billion.

Under construction

The company is developing two shopping centers in Surakarta, Central Java, and Lampung, Sumatra, which are due for completion in about three years, he said.

The Mal Solo project, occupying 50,000 square meters of land, would cost around US$60 million in investment, while the 60,000 square-meter Mal Way Halim project in Lampung would cost about $75 million, he said.

Hartadi said both Surakarta and Lampung were potential areas for development because both cities are yet to have large plazas.

He said the company would gain loans to finance the two projects.

Several institutions have already shown interest in financing the projects, he said, but declined to name them.

He said his company also planned to issue floating rate notes to fund the projects.

The company is also currently constructing a complex comprising a hotel, shopping center, service apartments, and office space on more than 100,000 square meters in Jakarta.

The project, called Plaza Galeria, would cost Rp 250 billion in investment, he said.

Hartadi said Duta Anggada owned a 15 hectare plot in the city's most commercial district, the Golden Triangle area. About six hectares of the land has not been built. (das)