Summarecon to build new high-rise building
Summarecon to build new high-rise building
JAKARTA (JP): A business and entertainment center will
highlight Kelapa Gading Permai's 20-hectare town center,
scheduled for completion by 1999.
The six-story building, the Sentral Promenad, will soon be
developed by PT Sentral Summarecon Sukses, a joint venture of the
Summarecon Group and businessman Sudwikatmono.
Sudwikatmono and senior executive of the Summarecon Group,
Soetjipto Nagaria, signed yesterday an agreement on the
establishment of the new joint venture.
The Sentral Promenad, the second stage of the satellite
center's town center, will consist of street-stall food vendors,
restaurants, entertainment centers, an ice skating rink,
exhibition hall and retail space.
Sentral Summarecon, the ongoing first stage of the town
center, features a shopping mall, mosque, food center and
marketplace.
Soetjipto, the president of Sentral Summarecon Sukses, said on
Wednesday that more than US$600 million would be spent for the
development of Sentral Summarecon, of which $100 million would be
earmarked to build Sentral Promenad.
He said Sentral Summarecon would be completed in the next five
to six years.
Construction on Sentral Promenad is scheduled to begin at the
end of this year or beginning of next year, with a completion
timetable of one year.
"Of course, these developments will also depend on the
country's economic situation, which is why we will do it in
several stages," he said.
He said the next stage of the town center's development would
consist of an apartment building, hotel and business district,
but did not disclose when it would begin.
Sudwikatmono, a close relative of President Soeharto, said he
had a 10 percent stake in the Sentral Promenad project.
He said he would seek offshore loans for the project following
the recent decision of Bank Indonesia, the central bank, to ban
new loans for land acquisition and development.
"The lenders will most likely be a syndication of banks. We
will look for ones with low interest rates," he said. He refused
to discuss possible participating banks.
BI issued a decree last week banning new loans for land
acquisition and development by property companies. The ruling,
which exempts cheap housing projects, is believed to be an effort
to control the rapid rise in lending to the property sector.
Sudwikatmono acknowledged the Sentral Promenad project had not
received the development permit from the Jakarta administration.
He was confident a permit would soon be issued because the
project's site plan confirmed it did not overlap with public
space and areas designated for other purposes.
PT Summarecon Agung has developed Kelapa Gading Permai for the
past 20 years. It covers 500 hectares and now includes 17,000
houses, shop-houses and office-houses. The complex also has 70
branches of various banks, six local schools, two international
schools and hundreds of restaurants. (pwn)