SINGAPORE (Yosefardi) – Keppel Land Limited, through its wholly-owned subsidiary, PT Keppel Land, has entered into an agreement to sell its 80% effective shareholding in BG Junction, a strata-titled retail development in Surabaya, Indonesia, to Silverise Enterprise Ltd and PT Pelangi Arjuno, for approximately Rp 400 billion (S$42.8 million).
Silverise Enterprise Ltd currently owns a 20% stake in the retail development. The sale is expected to result in an after-tax profit of about S$12.5 million for Keppel Land.
Located near the Central Business District in Jalan Bubutan, BG Junction comprises a six-storey retail mall with a net floor area of about 47,000 sm and an adjoining multi-storey car park.
The retail mall is currently about 95% occupied with anchor tenants such as Carrefour hypermarket, Cahaya Departmental Store and Hartono Electronic.
Keppel Land’s portfolio of projects in Indonesia includes International Financial Centre Jakarta (IFC), located on a prime site along Jalan Jendral Sudirman in Jakarta’s central business district, a three-hectare residential site in West Jakarta acquired earlier this year, as well as Ria Bintan, an integrated resort comprising hotels and championship golf courses.