Hong Kong - May 23, 2013 Press Release
PCPD acquires a site in Jakarta for Grade A office development
• PCPD proposed to acquire the Land in Jakarta, Indonesia comprising a site area of 9,277 square meters at a consideration of US$184 million.
• PCPD plans to develop a 40-storey Grade A office building with development area not less than 132,000 square meters.
• The Land is located in Sudirman CBD, one of the prime business districts within what is referred to as the Golden Triangle of Jakarta.
• This Acquisition will further diversify PCPD's property interests in the Asia Pacific region.
Pacific Century Premium Developments Limited ("PCPD" or the "Company") (SEHK:
00432) today announced the proposal to acquire a piece of land comprising a site area of 9,277 squares meters located in Jakarta, Indonesia, for the development of a
40-storey Grade A office building. PCPD believes this proposed investment will diversify the Company's property interests in the Asia Pacific region.
PCPD, through its indirect wholly-owned subsidiary, entered into the Land Sale and Purchase Agreement ("Land SPA") with among other parties, PT. Citra Adisarana ("PT CA") and its parent company, PT Danayasa Arthatama, Tbk. ("PT Danayasa") in which PCPD's subsidiary conditionally agreed to acquire the Land for a consideration of US$ 184 million (approximately HK$1,428 million) subject to downward adjustments and deductions, when applicable. The total investment cost, that includes the consideration for the land acquisition and the payments required under an agreement with another subsidiary of PT Danayasa to provide support in connection with the project and construction cost, is expected to be approximately US$400 million (approximately HK$3,105 million). The project is expected to be completed by the end of 2016.
As previously announced on October 8, 2012, PCPD has entered into a three-year Hong Kong Dollar facility whereby the lenders have agreed to make available a term loan facility and a revolving loan facility up to an aggregate amount of HK$3,000
million. This amount, plus the Company's cash on hand, could be available to fund
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the Land consideration. The Company may consider specific project loan to finance the development cost.
Mr. Robert Lee, Deputy Chairman and the Chief Executive Officer of PCPD said: "We are pleased to acquire this Land which is located in Sudirman CBD, which is one of the prime business districts in Jakarta known as the "Golden Triangle of Jakarta". In view of the increasing demand for quality office and increased rental rates in Jakarta, we believe that demand will continue to be robust during the development period for the Land."
"This acquisition is in line with our objective of developing major projects in the Asia Pacific region to sustain our long term growth given that Indonesia has been one of the fastest growing economies in Asia with an average annual GDP growth rate of
6.3% between 2010 and 2012. The country's GDP is projected to grow 6 to 7 % over the three years to 2015," Mr. Lee added.
The transactions for acquisition of the Land in aggregate constitute a very substantial acquisition for PCPD under the Listing Rules while the transactions for the investor to obtain a minority stake in the project constitute a major transaction for PCPD under the Listing Rules. A Special General Meeting will be convened by PCPD for its shareholders to consider and approve these transactions.
Majority-owned by PCCW, PCPD and its subsidiaries are principally engaged in the development and management of premium property and infrastructure projects, as well as investment in premium-grade buildings, in the Asia-Pacific region.
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