Wisma BCA sold to Singapore's Keppel Land

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)