Posted on 09 Apr 2015
SSIA teams up with Japanese, Thai firms on warehouse
Jakarta-listed
property and construction company Surya Semesta Internusa (SSIA) is looking to
strengthen its portfolio in the warehouse business, having established a joint
venture with two foreign companies to work on its “technopark” projects in its
West Java industrial estate and other potential cities nationwide.
SSIA announced on Wednesday that it has set up a joint venture with Japan-based
Mitsui & Co., Ltd. and Thailand-based TICON Industrial Connection Plc to
establish SLP Surya TICON Internusa, a new company with a focus on
constructing, leasing and operating warehouses and ready-to-use factories.
According to the company’s documentation, the authorized capital of the new
entity is around US$185.6 million, while its issued and paid-up capital is
around $46.4 million.
SSIA owns a 50 percent stake in SLP, while its foreign partners hold 25 percent
each.
As its initial project, the joint venture will work on SSIA’s Suryacipta
Technopark project, which is located within the company’s Suryacipta City of
Industry in Karawang, West Java — having acquired the 22 hectares of land from
the 567-ha industrial estate.
SSIA’s general manager of finances and accounting, Sony Satianegara, said that
the new entity would disburse about $75 million in investments to develop the
technopark, which includes a sum to purchase the plot of land.
With the issued and paid-up capital already in hand, Sony said that the new
entity would source additional loans amounting to around $28 million to meet
its capital needs, probably from foreign lenders.
SLP is planning to build a 146,000-square-meter industrial compound consisting
of warehouses, ready-to-use factories as well as commercial building. The first
phase of the project, comprising 35,000 sqm of land, concluded construction
early in 2014 with a current occupancy rate hitting 81 percent.
SLP is expected to resume the second phase — comprising 26,000 sqm — this year,
with the whole project slated to finish in 2017.
“Once of the project concludes, we expect to see recurring income from the
warehouse project reach around Rp 150 billion [$11.6 million],” he said.
Johannes Suriadjaja, president director of SSIA, said that the company hoped to
forge a long-term partnership through SLP and was eyeing other cities as places
to develop warehouse businesses after the Karawang venture.
“There are other cities that also have promising potential, such as Medan
[North Sumatra], Surabaya [East Java] and Makassar [South Sulawesi],” he told
reporters
Mitsui & Co.’s general manager of second overseas business development
department, Eiichi Tanabe, and TICON managing director Virapan Pulges said they
were confident that the demand was there for SLP’s projects, saying that
enthusiasm from Japanese investors and TICON customers to invest in Indonesia’s
growing economy is high.
Mitsui & Co. is one of Japan’s largest general trading companies, operating
in various kinds of industries through 142 branches in 66 countries. It is part
of Mitsui, one of the world’s biggest business groups.
TICON, meanwhile, is Thailand’s biggest provider of factories and warehouses
for lease or sale, operating 2.2 million sqm of industrial property in 50
locations across the neighboring country.
TICON, according to a report by Reuters, plans to invest 50 billion baht ($1.54
billion) over the next five years to expand its ready-built factories and
warehouses at home and in Indonesia, Myanmar and Vietnam, it said in late
March.
Shares of SSIA — listed under the code SSIA in the Indonesia Stock Exchange
(IDX) — were up by 3 percent on a daily basis to Rp 1,200 a piece at
Wednesday’s closing following the joint venture announcement.
