Foreign buyers eye local properties

Foreign buyers eye local properties

JAKARTA (JP): International fund managers from Europe, North
America, Australia and the United Arab Emirates are lining up to
buy cheap properties in crisis-hit Asian countries, including
Indonesia.

Bayu Utomo, associate director of Procon Indah and Agus
Kustandi, manager of sales and investment for the firm of
property consultants said yesterday that fund managers had so far
targeted properties owned by cash-strapped companies.

They said that by and large, fund managers, who have allocated
at least US$300 million to buy property in Southeast Asia, are
still waiting for the right time to enter the market.

They could not give details of the funds earmarked for
individual countries in the region, but expected fund managers to
focus particularly on Indonesia, Malaysia and Thailand.

"Gross funds of around US$300 million are now ready to be
invested in property in these countries," he said.

Agus said that most fund managers who had made inquiries about
Indonesia had expressed interest in purchasing property in
strategic business areas along Jl. Sudirman, Jl. Thamrin and Jl.
Rasuna Said, known locally as the golden triangle.

"They only want to buy property in the central business
district," Agus said.

Bayu added that most foreign fund managers had shown a
preference for properties currently occupied by multinational
corporations in the golden triangle area.

"Foreign funds managers believe that multinational
corporations who become the main tenants of properties in the
area will not relocate business to other areas of Jakarta," he
said.

However, analysts said that a lack of legal certainty
surrounding property ownership by foreigners in Indonesia would
pose a problem for the fund managers. (aly)