Pakuwon to build hotel and mall in Surabaya

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)