Jaya Real Property to issue 35 million new shares

JAKARTA (JP): PT Jaya Real Property (JRP), a subsidiary of PT Pembangunan Jaya, a major property developer, will issue 35 million new shares in May to finance land acquisition and the development of three satellite city projects.

The company's president, Ciputra, said that half of the funds to be raised from the selling of 14.9 percent of the company's enlarged shares will be allocated to finance land acquisition and the development the Bintaro Jaya Satellite City, while the other half will be used to finance the development of two other satellite city projects.

He said that company possesses five land acquisition permits for 1,721 hectares, of which 821.5 hectares have been acquired.

Before the share issue, JRP is 100 percent owned by Pembangunan Jaya and after the share issue Pembangunan Jaya will own 85.1 percent and the public 14.9 percent.

Pembangunan Jaya, founded in 1961 by the Jakarta municipal administration, is 40 percent owned by the city administration, with 60 percent owned by businessmen.

According to Ciputra, the initial public offering is scheduled on May 9 to 11 and the company will hold road shows in Singapore, Hong Kong, Bahrain, London, New York and Boston.

Wijaya, the executive of PT W.I. Carr Indonesia, the company's managing underwriter, said that at least 26 underwriters will participate in the issuance of JRP's new shares.

Capital

The company, established in 1979 as PT Bintaro Jaya, increased its authorized capital in 1992 from Rp 10.9 billion (US$5.08 million) to Rp 150 billion ($69.9 million) and changed its name to PT Jaya Real Property as the company planned to expand its business not only in Bintaro but also to build two other satellite cities. Both will be approximately the same size as Bintaro Jaya.

Ciputra and Wijaya refused to mention the location of the two projects to avoid land speculation.

The company is also the owner of four shopping centers in Jakarta, such as the Slipi Jaya Plaza, Plaza Bintaro Jaya and Block IV and V of the Senen Shopping Center.

Tanto Kurniawan, the company's finance director, said the company's revenue increased from Rp 69.9 billion in 1991 to Rp 105.3 billion in 1993 and the company's after tax profit rose from Rp 9.6 billion to Rp 43.8 billion.

The company's assets also increased from Rp 203 billion to Rp 360 billion.(03)