“Genting Plantations plans RM593 million acquisition of 152 hectares in Sentul City, Jakarta for property development, aiming to expand its footprint in Indonesia.”
Kuala Lumpur, 22th July 2024, 10.31am – Genting Plantations Bhd (GenP), 55.4% owned by Genting Bhd, plans to acquire two land plots in Indonesia for RM593 million for property development.
The plots, covering 152 hectares, are located in Sentul City, Bogor Regency, West Java Province, Jakarta, according to GENP’s stock exchange filing on Friday.
The plantation group announced that its indirect subsidiaries had signed separate sale and purchase agreements (SPAs) with three vendors — PT Sentul City Tbk, PT Aftanesia Raya, and PT Primatama Cahaya Sentosa — to acquire the land.
Genting Plantations Bhd (GenP) is purchasing the first plot of land, measuring 80 hectares, for 1.76 billion rupiah (RM509.8 million). The second plot, measuring 72 hectares, is being bought for 288 billion rupiah (RM83.2 million).
GenP plans to finance the acquisition through internal funds and bank loans. Although this acquisition will increase the company’s gearing, it is not expected to affect its earnings for the financial year ending December 31, 2024 (FY2024).
As of the end of March 2024, GenP had cash and bank balances of RM944.41 million, with total borrowings amounting to RM2.16 billion.
The group announced that the acquisitions, expected to be completed in the first quarter of 2025, align with its goal of expanding its footprint in Indonesia.
“Recent developments within and around the Sentul City township have shown strong demand for landed residential properties, with most experiencing high sales within the first few months of their launch,” it stated. The purchased plots are expected to benefit from this buyer interest for future property development initiatives.
On Friday, GenP shares rose by three sen or 0.51% to close at RM5.88, giving the group a market value of RM5.28 billion.
