Jakarta. Sinar Mas Land, the property holding of diversified conglomerate Sinar Mas Group, has formed a joint-venture with a Japanese consortium led by automotive conglomerate Mitsubishi Corporation to develop a premium mixed-use area in BSD City, Tangerang, Banten, with an investment of more than $260 million (Rp 3.5 trillion), the company announced on Saturday (30/09).
Sinar Mas Land's listed property developer Bumi Serpong Damai, Mitsubishi, an investment arm of the Japanese Ministry of Land and Infrastructure and private rail companies Hanshin Electric Railway Corporation, Nishi-Nippon Railroad Corporation and Keikyu Corporation, will develop projects on 19 hectares in BSD City to build 1,000 units of houses and shops.
The Japanese companies in the consortium have long experience in developing transit-oriented properties.
The joint venture, named BSD Diamond Development, is going to be launched in the near future.
"This cooperation proves the trust of foreign investors in developing BSD City. The project has a high growth potential and is strategically located, with excellent accessibility," Sinar Mas Land chief executive of strategic development and services Ishak Chandra said in a statement.
As Sinar Mas Land's flagship development, BSD City now covers 5,950 hectares. The joint venture is expected to strengthen the company's businesses.
"Sinar Mas Land and Mitsubishi are confident that Indonesia's economic growth will remain stable, as it is supported by a large middle-class population, and property demand will continue to rise in the near future," Ishak said.
Previously, Sinar Mas Land was also involved in strategic partnerships with Japanese companies: trading group Sojitz, retailer Aeon, Itochu-Japan, Mitsubishi Corporation, and property investment group Hongkong Land. Its domestic partners include media conglomerate Kompas Gramedia and pharmaceutical company Kalbe Farma.