Summarecon Takes Out BCA Loan After Shelving IPO Plan
BY :FARID NURFAIZI & DION BISARA
DECEMBER 24, 2015
Jakarta. Property developer Summarecon Agung has secured a Rp 550 billion ($40 million) loan from Bank Central Asia, Indonesia's third largest lender, to finance the company's operations.
Under the loan deal, Summarecon would also guarantee the debt of six of its units— Makmur Orient Jaya in Bekasi on the eastern outskirts of Jakarta, Dunia Makmur Properti and Summarecon Hotelindo in East Jakarta, as well as Lestari Mahadibya, Serpong Cipta Kreasi and Kharisma Intan Properti in Tanggerang, just west of Jakarta.
The debt amasses to Rp 125 billion, said Lidya Tjio, a lawyer for Summarecon's board of directors.
The move to take out a loan came after the company shelved in November its plan to transfer Rp 6.19 trillion worth of assets to Summarecon Investment Property, its property management subsidiary.
The planned transfer was part of a wider asset-restructuring program to prop up Summarecon Investment Property's value for an initial public offering and raise $200 million by the end of this year.
However, Summarecon board of directors decided that current market condition was unfavorable for raising new capital.
Under the proposed plan the parent company would sell off three shopping malls (Mal Kelapa Gading 3 and 5 and La Piazza), its Pop and Harris hotels and its Gading Food Hall City, all of which are located in North Jakarta and are worth a combined Rp 3.91 trillion, by November.
Another sell-off, worth Rp 2.27 trillion, would see Mal Kelapa Gading 1 and 2 change hands by October 2019.