Wisma BCA sold to Singapore's Keppel Land

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) announced on Monday that the BCA headquarters building had been sold to Singapore's Keppel Land Ltd. for Rp 280 billion (US$33.73 million).

IBRA said the selection was the result of an international open tender sale which began in the middle of July this year.

"Keppel Land's bid was the highest we received," IBRA asset management investment director Dasa Sutantio said.

He added that the bids received were within market expectations.

Sale of Wisma BCA is the first major investment-grade property asset sold by IBRA.

Wisma BCA, a prime property located in Jakarta's main business area, is part of the assets surrendered by the Salim Group to repay its obligations to the government.

The disposal of the Salim Group assets is part of the overall asset disposal program of the agency to raise some Rp 18.9 trillion in cash this year to help finance the current April- December state budget.

Dasa said that 35 local and foreign investors expressed an interest in the property as soon as it was put up for sale through tender. Seventeen of the bidders signed a confidentiality agreement to obtain information about the property.

He added that seven investors participated in a due diligence process and eventually two investors submitted "very encouraging bids".

"Keppel Land's purchase of the property is a strong signal that confidence from foreign investors in the Indonesian economy is returning," Dasa said.

"We hope that this prime property sale will be a turning point that will speed up the recovery of the property sector in Indonesia," he added.

Keppel Land is one of the largest property groups listed on the Singapore Exchange Securities Trading Ltd, and has a diversified portfolio in most countries in Asia.

There has been concern that IBRA might not be able to meet the Rp 18.9 trillion target because, with only some three months to go before the deadline, the agency must raise another Rp 11 trillion. (rei)