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)