Nirvana Development to Drop Rp 700b on 3 Projects

By webadmin on 04:26 pm Sep 15, 2012
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ID/Jauhari Mahardhika

ID/Jauhari Mahardhika

Nirvana Development, a newly listed company, which has its core business in property, plans to invest Rp 700 billion to Rp 800 billion ($74 million to $84 million) to develop projects in Cirebon, West Java; Solo, Central Java and Sampit in Central Kalimantan.

Nirvana plans to secure 60 percent of the financing for the projects from bank loans, with the remaining 40 percent from internal cash, according to Nirvana president director Andreas Karta Winata.

Finance director Frederick Rompas said Bank Sinarmas and Bank Victoria have committed to lend Nirvana Rp 150 billion.

“Sinarmas has committed to lending us Rp 30 billion, and Victoria Rp 120 billion,” Frederick said.

In Cirebon, Nirvana is developing an integrated property project called Cirebon Superblok on a 60,000-square-meter plot of land. CSB will have malls, shophouses, hotels and office buildings. Andreas said that this project needs Rp 100 billion worth of investments.

In Solo, Nirvana is developing a superblock called The Park Solo, covering 125 thousand square meters. This project will house malls, a hotel and shop houses.

The location will have a Swiss-Belhotel, which is part of an international hotel chain. Investment in The Park Solo is Rp 400 billion.

A superblock in Sampit, is expected to cost between Rp 200 billion and Rp 300 billion.

The superblock, called Borneo City, will rest on 36,000 square meters. Some companies are already showing interest in setting up shop in Borneo City, including Matahari Department Store, Hypermart and Fun World.

Nirvana has targeted Rp 40 billion in net income for this year. The company had already reached Rp 33 billion by mid-year.

Nirvana had an initial public offering earlier this month, selling six billion shares — equivalent to 33.33 percent of its total equity — at the price of Rp 105 per share.

Nirvana raised Rp 630 billion from the IPO proceeds.

Indonesia’s low-interest rate environment and manageable inflation has helped the growth of the property sector.

On Friday, shares of Nirvana traded on the Indonesia Stock Exchange rose 35 percent to Rp 240 per share.