Perennial Real Estate Holdings to develop 1,700-unit Indonesian site for $153.4m

It bought a 60% stake in the site for $21m.

Perennial Real Estate Holdings (Perennial) will develop a 246,982-sqm land parcel in Sentul City, Bogor Regency, Indonesia for $153.4m.

Its subsidiary Perennial SL (PSLPL), bought Sanctuary City (SCPL) for $21m. SCPL owns 60% of PT Bhakti Bangun Harmoni, which wholly-owns the site.

Perennial took a 60% stake in the site after the acquisition. It will jointly develop the site with an Indonesian company, PT Cipta Harmoni Lestari (CHL).

The site is located is about 50 kilometres south of Jakarta, the capital of Indonesia. The project company intends to build a residential development on the site, encompassing a variety of residential properties, including landed houses and condominiums, with a total gross floor area of at least 147,000 sqm and over 1,700 residential units.

"Establishing a presence in Indonesia is in line with Perennial’s strategy to invest in high-growth emerging markets, complementing its current asset portfolio, which is predominantly in the People’s Republic of China and Singapore," Perennial said.

The development will be funded through residential sales, external borrowings, and internal funds. SCPL and BBH will also become subsidiaries of Perennial.