Tuesday, 28 January 2014

Sinarmas unit Bumi Serpong to enter Indonesian toll road business


Indonesian property developer PT Bumi Serpong Damai, a unit of Singapore-listed Sinarmas Land Ltd, has set up a joint venture to build toll roads which could boost the prices of its surrounding projects.

The company aims to work with Kompas Gramedia Group and PT Astratel Nusantara to develop the 36-kilometre Serpong-Balaraja toll road on the outskirts of Jakarta, Bumi Serpong Director Hermawan Wijaya told reporters on Monday.

"We want to go into the toll-road business because this will benefit our property projects," Wijaya said. He declined to disclose the expected investment value for the toll road project, but it has been estimated to cost around 5 trillion rupiah ($410.5 million).

The winning bidder for the concession to the Serpong-Balaraja toll road has not been announced, but Bumi Serpong, which initiated the project, stands a high chance as it has the right to match a competing offer, Samuel Sekuritas said in a note on Monday.

The brokerage added that the new toll road is expected to increase the value of Bumi Serpong's BSD City, a residential, office and commercial project in the south-west of Jakarta.

($1 = 12,180.00 rupiah) (Reporting by Fathiyah Dahrul; Writing by Eveline Danubrata Editing by Matt Driskill)

Source: http://www.reuters.com/

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