Modernland to construct shopping malls and condominiums

Modernland to construct shopping malls and condominiums

JAKARTA (JP): PT Modernland Realty Ltd, a housing, golf course
and country club developer, will build shopping malls and
condominiums to attract consumer interest.

PT Modernland Realty Ltd. is a subsidiary of Modern Group,
which is listed on the Jakarta and Surabaya stock exchanges.

"In view of the tight competition, we are concentrating on
developing shopping malls and condominiums," the company's
president, Samadikun Hartono, told reporters after its annual
shareholders meeting here yesterday.

Samadikun said the company will construct a shopping mall and
eight towers of condominiums in Taman Modern, the company's
housing project in East Jakarta, and another shopping mall in
Bukit Modern, the company's housing project in South Jakarta.

The company's director of finance, Antonius I. Karamoy, said
the construction of the shopping malls and condominium will be
financed by the company's profits and funds from a rights share
issue later this year.

Antonius said the construction of a shopping mall will cost
about Rp 20 billion (US$9.26 million) and one tower of
condominium about Rp 25 billion ($11.58 million).

Antonius said the company will initially build two towers of
condominium.

He said the company's after-tax profit dropped to Rp 20.05
billion ($9.29 million) last year from Rp 33.56 billion ($15.54
million) in 1992.

Antonius said the lower profit was due to the new accounting
standard applied to its financial reports. By these new
standards, some of the company's real estate assets which were
formerly regarded as company profits were excluded.

The new figures were released by the Capital Market
Supervisory Board (Bapepam) on Feb. 16.

In 1992, the company still applied its own accounting
standard, he added.

The annual shareholders meeting approved the distribution of a
cash dividend of Rp 70 (3 US cents) per share for its 74.80
million shares.

The company projected its sales turnovers this year at Rp 300
billion ($138.95 million), up from Rp 148 billion in 1993.

"We based this projection on our actual sales turnovers during
the first five months of this year which have reached Rp 164
billion ($75.96 million)," Antonius said.

Modernland is currently developing Modernland Cipondoh, a
housing complex in West Jakarta; Modern Golf Course and Country
Club, also in Cipondoh; Taman Modern housing complex in East
Jakarta and Bukit Modern housing complex in South Jakarta.(02)