M’sian companies, Pt Hanson sign MoU for a RM3.5bil project

Bakke expects the completion of the asset monetisation plan by the end of March.

JAKARTA: Three Malaysian companies, namely Sime Darby Bhd, I and P Group Sdn Bhd and SP Setia (Indonesia) Sdn Bhd, have teamed up with Indonesia’s PT Hanson International Tbk to jointly develop an affordable housing project here.

The project, with a gross development value of RM3.5bil on a 500-hectare land, is situated in Maja, Tangerang, about 80km from Jakarta.

A memorandum of understanding (MoU) was signed today between the companies on the sidelines of the 12th World Islamic Economic Forum (WIEF) here.

The signing was witnessed by Prime Minister Datuk Seri Najib Tun Abdul Razak and WIEF chairman Tun Musa Hitam.

PT Hanson is one of Indonesias largest property developers by landbank, owning more than 3,500 hectares in greater Jakarta.

The four companies in a joint statement today said, the proposed project is next to an existing township called Citra Maja Raya, which started development in 2015.

Citra Maja Raya is being developed by PT Hanson in partnership with Ciputra Group, one of Indonesias largest developers.

Sime Darby is Malaysia’s biggest conglomerate by market value with operations in more than 26 countries.

S P Setia (Indonesia) Sdn Bhd is a wholly-owned subsidiary of S P Setia Bhd, Malaysia’s largest property developer by market value, with a regional footprint that spans countries like Australia, Singapore, Vietnam, China and the United Kingdom.

I and P Group, is a wholly-owned subsidiary of Permodalan Nasional Bhd (PNB).

The group is one of the few leading developers in Malaysia with over 50 years of experience in township development and is known for its quality build and good track record.

It has developed over 60 townships in Malaysia and is currently actively developing 13 township and five future township developments which are primarily concentrated in the Klang Valley and Johor Baharu.

Meanwhile, under the MoU, the companies have proposed to enter into a joint venture, whereby the Malaysian entities will have an equity interest of 20 per cent each, while PT Hanson holds the rest.

The parties will continue negotiations to finalise the details and work on an agreement within three months, said the statement.

“As Malaysia’s biggest property developer by land, Sime Darby is keen to share its experience in developing sustainable communities.

“This is an opportunity for Malaysian and Indonesian companies to collaborate in what we hope will be a win-win partnership,” said Sime Darby’s president and group chief executive, Tan Sri Mohd Bakke Salleh.

Hanson Group chairman Edi Yosfi said the group is proud to partner with  companies from Malaysia with extensive experience in the property development industry.

“As Indonesia’s leading property developer, PT Hanson is optimistic this partnership will contribute towards Indonesia’s efforts to provide much needed affordable housing,” he added.

Maja is located to the west of Jakarta and is near industrial areas in the Banten province where there are about 400,000 people working in 1,500 factories.

It is about 90 minutes away from central Jakarta by train.