Indonesia: Moderland to raise $72m from bonds issue; Summarecon sets higher capex

Photo by Modernland

PT Modernland Realty Tbk (MDLN), a midsize listed property developer, plans to raise Rp 1 trillion ($72 million) from issuing bonds, PT PP Properti Tbk (PPRO) tripled its net income to Rp 300 billion ($14 million) last year from 2014, while PT Summarecon Agung Tbk (SMRA) sets aside higher capital expenditures in 2016 to fund more property projects.

Moderland to raise $72m from bonds issue

Modernland Realty, member of Modern Group, plans to raise Rp1 trillion from issuing bonds later this year to pay back debts, corporate secretary Cuncun Wijaya said in a statement. The company has yet to determine a schedule for the issuance, but it has an outstanding $150 million bond due in October.

The bond was issued in 2013 by Singapore-based unit Modernland Overseas, bearing 11 per cent coupon. Modernland Realty plans to spend Rp 1 trillion this year in capital expenditure, the same amount as last year’s realisation investment.

Modernland plans to acquire more land, including 1,300 hectares in Bekasi, West Java, for its development of the Modern Bekasi Residential and Industrial Park. The company will also develop its industrial complex Modern Cikande Industrial Estate in Banten, Cuncun said.

PP Property triple’s net profit in 2015

PP Properti, the property developer unit of state-owned contractor PT PP Tbk (PTPP), managed to triple its net income to Rp 300 billion ($14 million) from 2014 on the back of timely sales of its project. The achievement bolstered the company’s plan to expand with a Rp 600 billion capital expenditure this year to acquire more land.

Groundbreaking of the company’s latest apartment tower – Ayoma Serpong in Banten, Amartha View in Semarang, Central Java, and Grand Dharmahusada Lagoon in Surabaya – lifted the company’s marketing sales to Rp 2 trillion last year. The figure, however, will not enter the company’s financial report before the projects are completed.

“We achieved this thanks to an apt marketing strategy… and punctual project construction,” president director Taufik Hidayat said.

He added that the company plans to raise Rp 300 billion from issuing medium-term notes later this year to help finance its expansion plan.

Summarecon sets aside $194m capex

Other property developer Summarecon Agung has sets aside a Rp 2.7 trillion ($194 million) capital expenditure this year to continue its property projects, president director Adrianto Adhi said. The company plans to use internal funds, loans or proceeds from selling real estate investment trusts (REIT).

Summarecon is now sitting on at least Rp 1.05 trillion in capital after last month securing a Rp 550 billion loan from PT Bank Central Asia Tbk (BBCA), Indonesia’s third largest lender, and issuing Rp 500 billion worth of bonds in November.

Summarecon Agung is also mulling a plan to sell $200 million REITs as an alternative to the failed initial public offering of the company’s subsidiary PT Summarecon Investment Property (SIP), Adrianto said. Adrianto did not elaborate on projects the company wishes to pursue this year.

Also Read:

Indonesia based Summarecon to transfer $436m realty assets to IPO-bound subsidiary

Indonesia’s PP Properti plans to develop three malls to boost recurring income

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.