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)