PT Arthayasa secures $232.7 million in loans

JAKARTA (JP): PT Arthayasa Grahatama, a subsidiary of PT Danayasa Arthatama, secured yesterday US$232.7 million in syndicated loans to finance the development of its new property project.

The company's president, Santoso Gunara, said the loans for the project, Conrad International Center, would mature in eight years including a one-year grace period.

Santoso said the project, which would include a hotel, apartments and an office building, would be part of the Sudirman Central Business District (SCBD), a business district on Jl. Sudirman.

The loans are provided by a syndication of 17 overseas and local banks, with Korean First Bank acting as the loan arranger.

The other syndication members include Bank International Indonesia, Bank Panin, Housing & Commercial Bank of Korea as the joint arranger, Bank Bali and Bank Danamon as the co-arranger, Bank of Taiwan as the lead manager, First Commercial Bank and National Agricultural Cooperatives Fed as the co-lead managers and other managers include Kyongnam Bank, Daehan Investment Bank, Koomin Bank, Ssangyong Merchant Banking Corp., KDB Asia Limited, Chung Leasing, Gyong Merchant Banking Corp. and Shinhan Investment Bank.

Santoso Gunara said total investment to build the Conrad International Center (CIC) was around US$650 million, of which some of the funds would be from the loans signed yesterday. The remaining money would come from the company's equity.

In addition, he said, the project would also be financed by pre-commitment funds from potential occupants such as the Sampoerna group, which had committed to taking office space.

"Sampoerna Group has committed to rent 75 percent of the tower," he said.

The CIC will include the five-star Conrad International hotel with 625 rooms and 60 deluxe rooms, the Conrad International Apartments with 138 serviced apartments, Conrad International Plaza with a floorspace of 31,000 square meters and two 36-story office towers.

Santoso said construction had begun. "75 percent of piling works have been done," he said adding that the total construction is expected to be completed by 1999.

Meanwhile, the president of PT Dhanayasa Arthatama (DA), holding partner of PT Arthayasa Grahatama, Nasroel Chas said the company planned to float shares on the capital market at the end of this year. "We plan to make our capital market debut by the end of 1997," he said.

He said Mashil Securities would be appointed as lead underwriter of the planned initial public offering.

Nasroel said DA had total assets of around Rp 4.8 trillion. (09)