In a statement Tuesday, Matrix said the formation of the newly-incorporated JV company, PT. Fin Centerindo Satu (FCS), follows the Memorandum of Understanding signed between the three parties in May 2018.
BKS will hold 40% equity in FCS, while Matrix Concepts and NSI would hold 30% stake each.
Matrix said the 30% equity participation by the group would be supported through internally generated funds and/or proceeds from future equity or debt fund raising exercise, depending on the group’s cash flow position.
PIK 2 Sedayu Indo City is poised to be a central business district north of Jakarta. It will encompass 4,000 hectares of integrated development with residential houses, apartments, shopping centres, a light rail transit system, and a stadium.
“This joint venture agreement not only marks our initial footprint into the up-and-coming Indonesian market, but also represents a remarkable opportunity for Matrix Concepts to work hand in hand with one of Indonesia’s largest property developers and a major conglomerate to establish a world-class Islamic Financial District in PIK 2,” chairman Datuk Mohamad Haslah Mohamad Amin said.
“Given that both countries share similarities in language and culture, we believe that this JV is a major stepping stone for us to gain a significant foothold in this rapidly-growing nation.
“Our partners are reputable property developers and industry leaders in Indonesia, allowing us the opportunity to understand the local property market better including its regulatory framework and economic patterns,” he said.