Sahid expansion needs Rp 600 billion

Sahid expansion needs Rp 600 billion

JAKARTA (JP): Publicly-listed property company PT Sahid Jaya
International announced yesterday that it needs a total
investment of Rp 600 billion (US$255 million) for its second
phase expansion project.

The project consists of the Menara Sahid building for office
spaces and a shopping mall, the Sahid Perdana hotel, the Puri
Agung hall and several restaurants.

Sahid's president, Sukamdani S. Gitosardjono, said after an
extraordinary meeting of the company's shareholders that the
construction of the Menara Sahid will cost approximately Rp 200
billion, while the planned 50-story Sahid Perdana hotel needs
more than Rp 350 billion.

Sukamdani said that at yesterday's meeting, minority
shareholders approved a proposal on the transfer of Sahid Jaya
hotel's management from Sahid Jaya International to its
subsidiary PT Sahid International Hotel Management Consultant.

For managing the hotel, he said, Sahid International will get
a management fee of 2 percent of Sahid Jaya's net revenues and 3
percent of its gross operating profit.

Commenting on how to finance the project, Sukamdani said that
the management has yet to decide how funds will be raised. "We
have several sources such as foreign and domestic syndication
loans as well as a rights issue."

He added that financial institutions from Singapore can offer
cheaper funds than domestic sources. (alo)