Hotel Sahid gets $40 million loan

JAKARTA (JP): PT Hotel Sahid Jaya International signed an agreement yesterday on a US$40 million term loan facility with a syndicate of international banks to finance the development of its Menara Sahid office tower.

"The loan, which matures within four years, will be used to finance the 38-story office building," said Chairman and President of the Sahid Group, Sukamdani S. Gitosardjono.

The arranger of the syndicated loan is Schroder International Merchant Bankers Limited (Schroders). Thirteen other banks and financial institutions took part in the syndication.

Sukamdani, his wife Juliah and his children Nugroho, Haryadhi, Exacty and Wiryanti, signed the loan agreement documents.

Robert M. Tomlin of Schroders and thirteen other executives from the international finance institutions representing the creditors also signed the documents.

"Of the loan, $30 million will finance the office building project, located next to the hotel (in the Sahid City Superblok) on Jl. Jendral Sudirman here," said Sukamdani, adding that the remaining $10 million will be used to refinance the Sahid Jaya's loans from other banks.

He said the office building, worth $99 million, is scheduled to be finished in early 1998 and will be sold under the strata title system.

Hotel Sahid Jaya International, which listed some of its shares on the Jakarta Stock Exchange in 1990, operates 16 hotels in Indonesia and is also engaged in banking, insurance, general contracting, printing, general trading, textiles, integrated wood-based industries, tour and travel services, money changing, agriculture and food and beverages.

The company reported total assets of Rp 199 billion (US$89 million) as of last year, of which Rp 146 billion ($65 million) was equity.

Sukamdani announced yesterday that his company will soon build a 50-story hotel, called Hotel Sahid Perdana, near the Sahid Jaya Hotel.

The $130 million hotel project will be a five-star diamond property with 600 rooms, he said. (kod)