Mitsubishi Corporation participates in mixed-use development project in Indonesia
Mitsubishi Corporation (MC) announced that it has participated in a mixed-use development project in Tangerang Regency, Indonesia. The Project will be developed in collaboration with PT Bumi Serpong Damai TBK. (BSDE), an affiliated company of Sinarmas Land Ltd (SML), one of Indonesia’s largest leading real estate enterprises.
The Project is located in Bumi Serpong Damai City (BSD City), a 5,950 hectare satellite township development under BSDE. BSD City lies just 25km southwest of central Jakarta and is prestigiously known as one of the largest and oldest township developments in Greater Jakarta. The Project has an overall planned area of approximately 19 hectares and will supply around 1,000 units of landed houses and shophouses.
To implement the Project, Mitsubishi Corporation; as the leading shareholder, will form a joint venture company in Japan (Japan JVC) with Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), Nishi-Nippon Railroad, Hanshin Electric Railway and Keikyu Corporation. The Japan JVC will co-invest with BSDE to create a new joint venture project company in Indonesia to implement the project (Indonesia JVC). The Japan JVC will hold a majority stake with a total investment commitment of up to approximately 10 billion JPY in the Indonesia JVC.
With steady economic growth and an expanding middle class, the Indonesian market is expected to see robust and continuous housing demand. Recent trends show township and residential developments spreading out from central Jakarta, resulting in the creation of new suburbs in the outer areas of the city. In keeping with this trend, a number of newly developed facilities including retail outlets such as AEON mall, one of the country’s largest convention centers, world-class hospitals, schools and other major establishments, have made BSD City one of the most attractive townships in suburban Jakarta.
Pooling BSDE’s extensive real estate expertise in the Indonesian domestic market and the Japan JVC’s range of residential development experiences, MC will collaborate with its partners to leverage advanced Japanese technology and product planning know-how to provide high value added development products and services to BSD City and to the Indonesian market as a whole.
Source: Mitsubishi Corporation