Pakuwon to build hotel and mall in Surabaya

JAKARTA (JP): PT Pakuwon Jati, a Surabaya-based property developer, will soon begin construction of an integrated shopping center and hotel in the heart of Surabaya, East Java, the company's executive said.

Pakuwon's director Omar Ishananto said over the weekend his company would develop Tunjungan Plaza IV, following three other Tunjungan Plaza developments it was operating.

"The project is estimated to cost Rp 250 billion (US$102.75 million) and would be financed with proceeds from bonds we have issued," Omar was quoted by Antara as saying.

He said the plaza project would have 28 floors, the first four of which would be designed for retail stores and the remaining 24 floors for a four-star hotel.

The planned hotel would have 300 rooms, he said.

Omar did not say when the project would start but said it would be completed by the end of next year.

He said the construction of the hotel and shopping center would support the effort to make Surabaya a recognized shopping city in the eastern part of the country.

He added that hotel business in the city would rise along with anticipated economic growth in the city.

"Although the hotel business seems to be slow now, rapid economic growth in the city in the next three to five years will help the business grow again," he said.

Pakuwon, which is listed on the Jakarta Stock Exchange, now operates Tunjungan Plaza I, II and III, all of which are located in Surabaya. The buildings are also adjacent to hotel and apartment complexes, including the Sheraton Hotel and Regency condominium. (das)