Jakarta. Property developer Sentul City intends to raise Rp 235 billion ($17 million) from selling shares to a private investor in order to expand its existing 13,500-hectare land bank, the company said in a statement on Tuesday.

Pending shareholder approval, the company will sell 3.4 billion shares, or 10 percent of its paid-up capital at Rp 75, pricing the shares at a 5.6 percent premium over Sentul City's closing price on Monday.

Sentul City shares rose 4.3 percent in the morning trading session on the Indonesia Stock Exchange (IDX) on Tuesday, outperforming the benchmark index that was flat.

"Decline in property demand [will] contribute to a [decrease] in land prices, presenting an opportunity for property companies to acquire land," the statement said.

Citra Kharisma Komunika, a trading company controlled by Dutch Growth Investment, stands as a prospective investor. Existing stakes of shareholders will be diluted by 9.09 percent.

The private placement plan is subject to approval from shareholders, who are scheduled to meet on Dec. 17, Sentul City said.