IBRA to invite tenders for BCA building today

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) will open the international tender sale of Wisma Bank Central Asia (BCA) office building from July 18 to Aug. 23, according to the agency asset disposal division head Dasa Sutantio.

Dasa said on Tuesday that the one-tier tender sale would be handled by marketing agent CB Richard Ellis.

He added that the winning bidder will be announced on Aug. 31, provided all bids received have been evaluated by IBRA.

"This prime property is the first major investment-grade property to be sold under Indonesia's bank restructuring program," he told a press conference.

The Wisma BCA building, comprising two modern towers (20 storeys and 10 storeys) with total rentable area of 37,511 square meters, is located on 10,444 sqm of land in one of Jakarta's primary business districts.

IBRA said in a statement that current estimates of average occupancy rates in the Jakarta primary office market is around 75 percent, while the occupancy rate of Wisma BCA as of June was 100 percent of which Bank BCA occupied about 82 percent.

The location of Wisma BCA and its current occupancy rate guarantee a stable income stream to its future owner, it added.

"For the past 10 years of growth in Jakarta's property market, en bloc sales of commercial buildings has been a rarity. IBRA is providing potential investors with a rare opportunity to invest in one of Asia's major property markets," the agency said.

The Wisma BCA building is one of the assets surrendered by the Salim Group to IBRA as part of its massive debt repayment.

The proceeds of the sale will help finance the state budget burdened by the high costs of the country's bank restructuring and recapitalization programs.

Dasa said potential bidders in the tender would be provided with pertinent information upon execution of a confidentiality agreement.

Dasa said that potential bidders would have until August 23 to complete their due diligence and submit an offer.

"All submissions will be evaluated based on the offer price and completed terms and conditions stipulated in the tender documents," he added.

Dasa said that the Wisma BCA sale would be a stimulus for the agency's future asset sales. (rei)