Pakuwon Jati to build a new shopping center

SURABAYA, East Java (JP): A publicly-listed property developer, PT Pakuwon Jati, got its shareholders's approval to build a new shopping center here with a total investment of Rp 248 billion (US$105.8 million).

"The new project, to be called Tunjungan Plaza IV, will be partially financed by bonds worth Rp 150 billion to be issued soon," a director of the company, Omar Ishananto, told journalists after the annual shareholders meeting here yesterday.

Omar said that the construction of the new shopping center will commence later this year.

Pakuwon Jati has built three shopping centers: the eight-floor Tunjungan Plaza I (which commenced operation in 1986), the 17- floor Tunjungan Plaza II (1991) and Tunjungan Plaza III (earlier this year) all located in "Pakuwon City" in Surabaya.

"With the construction of Tunjungan Plaza IV, Pakuwon City will become the country's largest shopping center with a total area of 130,000 square meters," Omar said.

"Unlike the others, Tunjung Plaza IV will be an integrated shopping center with a 212-room star-rated hotel at the top," he added. "It will be situated just opposite the Sheraton Hotel and Royal Condominium."

Omar also explained that Pakuwon Jati booked Rp 30 billion in net profits last year, an increase of 87 percent over 1994.

Sales revenues increased from Rp 58 billion in 1994 to Rp 128 billion last year.

Pakuwon Jati, which went public in 1989, is now 43 percent owned by the investing public, 22 percent by PT Pakuwon Darma, 18 percent by businessman Alexander Tedja, 12 percent by businessman Suhardi Poniman and 2 percent by businessman Binarto Tinor. (alo)