Grahaniaga gets $105 million loan

JAKARTA (JP): Property developer PT Grahaniaga Tatautama secured yesterday a US$105 million syndicated loan from 26 banks.

The company's president, Mohamad S Hidayat, said $75 million would be used to finance the development of the second Niaga Tower in the Sudirman Central Business District.

American Express Bank Ltd, Bank International Indonesia, Hong Kong branch of the state-owned Bank Bapindo and Bank Tiara arranged the loan.

"By doing this, we will not have much of a loan burden from Niaga Tower I," he said.

The loans, which will mature in five years with a two-year grace period, carry an annual interest rate of 9.4 percent.

Hidayat said Niaga Tower II, which cost US$130 million, would be completed in July 1999.

"Total equity for second Niaga tower is worth US$30 million in the form of land," he said.

When completed, Niaga Tower II will have banking and legal offices.

"Currently 70 percent of the space has been sold," he said.

The price of the space in Niaga Tower II will range between US$2,500 and US$3,800 a square meter. "The penthouse is priced at $3,800 per square meter," Hidayat said. (09)