Joint firm to build retail complex

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)