Joint firm to build retail complex

JAKARTA (JP): PT Pusindotrida, an affiliate of Susanti Group, signed on Saturday a joint venture agreement with Meadowsville Investment Pte. Ltd., a subsidiary of Straits Steamship Land of Singapore, to develop a retail complex in Surabaya, East Java.

Pusindotrida's president, Halim Santoso, said that the project, which is 20 percent owned by Pusindotrida and 80 percent by Meadowsville Investment Ltd., will be equipped with a hotel which will be built in the second phase.

"The retail complex, to be established with an investment of US$60 million, will offer 36,000 square meters of shopping space," he said after signing the agreement.

He said that the joint venture will have an equity of $15 million, of which $3 million will be contributed by Pusindotrida and the other $12 million by Meadowsville.

Asked about the involvement of the Singapore company in the retail project, Halim said that Straits Steamship Land, the property arm of Keppel Corporation Limited, will only build the commercial complex and will not be involved in the retail business.

He said the complex is expected to help promote products of East Java.

The executive director of Straits Steamship Land, Kevin Wong, said that the hotel to be built in the second phase of the project will be managed by the company's subsidiary, Sedona Hotels International.

Sedona Hotels Internationals has established an Indonesian subsidiary, Sedona Hotels Indonesia, which will manage a number of hotels, including Hotel Sedona Bintan Lagoon on Bintan island, Sedona Bumi Minang in Padang, West Sumatra, and Sedona Makassar in Ujungpandang, South Sulawesi. The subsidiary was launched on Saturday by Director General of Tourism Andi Mappisammeng. (04)