Pakuwon Jati to build a new shopping center

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)