MAINBOARD-LISTED Sinarmas Land has sold a freehold office and residential property in London for a cash consideration of £ 72 million (S$131.8 million), it said on Wednesday.

 

The property - Unlimited House, located at 10 Great Pulteney Street - was owned by Sinarmas' wholly-owned subsidiary SML Great. The freehold property provides 44,116 square feet of Grade-A office space and a self-contained five-unit residential block of 2,928 square feet.

 

Assuming that the disposal had been effected last Dec 31, and based on the consideration and pro forma net asset value of £ 56.5 million, the group would have recorded a gain on disposal of approximately £ 15.6 million, Sinarmas said.

 

Net tangible assets per share would have increased from S$1.02 to S$1.03, Sinarmas added.

 

The consideration was arrived at on a willing-buyer, willing-seller basis, and took into account the recent transaction prices of similar properties in the same location. Sinarmas added that the buyer had also undertaken its own valuation by a professional valuation firm.

 

It said the disposal - at this juncture of capital appreciation of properties in the same area - provided it with an opportunity to realise an " attractive rate of return on its investment" .

 

The group intends to apply the net proceeds for repayment of bank loan on the property, working capital, and/or for future acquisitions of investments or development properties.

 

MITBANA, a joint-venture company of Mitsubishi and Surbana Jurong, together with Sinarmas Land through its subsidiary Bumi Serpong Damai, on Monday announced that they will be jointly developing the first interconnected multi-modal transport complex in Greater Jakarta.

 

Spanning about six hectares in the Intermoda district of Bumi Serpong Damai (BSD) City, the new transit-oriented development (TOD) will offer access to multiple public transportation options, including road, rail, and park-and-ride facilities.

 

The approximately S$200 million project will also expand existing pedestrian connections from Cisauk train station, feature community facilities and a new town centre, and leverage smart technology to improve bus services within BSD City and other surrounding townships.

 

In a press statement on Monday, Sinarmas Land said that the Intermoda TOD is part of Mitbana and Sinarmas Land' s plan to transform over 100 hectares of greenfield land in BSD City into TODs comprising residential apartments, commercial properties, lifestyle amenities and public transport nodes.

 

" Mitbana will leverage Mitsubishi Corporation' s experience in curating urban developments and Surbana Jurong' s technical expertise in urban design to create a smart and high-quality TOD that is efficient and effective for its residents," said Hidetoshi Suzuki, chief operating officer of Mitbana.

 

Said Michael Widjaja, group chief executive officer at Sinarmas Land: " Despite the onset of Covid-19, we remain encouraged by the market' s strong fundamentals and continued interest in BSD City' s product offerings. The recent announcements by our government to promote foreign investment in Indonesia present tremendous potential for property development in BSD City. With the Indonesia market on the cusp of a strong recovery, Sinar Mas Land and Mitbana are well-poised to implement our plans for the Intermoda TOD."

 

According to Sinarmas Land, the Indonesian central bank' s recently eased mortgage policies - such as the relaxation of loan-to-value ratios for property mortgages and easing of mortgage disbursements to accredited property developers - are expected to improve overall affordability for local buyers and spur demand.

 

The development of Intermoda TOD is scheduled to start in 2022.