Sime Darby, SP Setia, I&P team up for Indonesian project

PETALING JAYA: Three Malaysian property developers Sime Darby Bhd, SP Setia Bhd and I&P Group Sdn Bhd have entered into a memorandum of understanding (MoU) with Indonesia’s PT Hanson International Tbk to jointly develop an affordable housing project in Greater Jakarta, Indonesia.
The project, spanning about 500ha land, has a gross development value of IDR11.29 trillion (RM3.5 billion). It is located in Maja, Tangerang, which is about 80km from Jakarta.
Under the MoU, Sime Darby, SP Setia and I&P will each own a 20% stake while the remaining 40% held by PT Hanson. I&P Group Sdn Bhd is a wholly owned subsidiary of Permodalan Nasional Bhd (PNB).
PT Hanson is one of Indonesia’s largest property developers by landbank, owning more than 3,500ha in Greater Jakarta.
The parties will continue negotiations to finalise the details and work on an agreement within three months.
The 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 Indonesia’s largest developers.
Jakarta is home to 10 million people, while Greater Jakarta houses more than 25 million.
Meanwhile, PT Hanson group chairman Edi Yosfi is optimistic that this partnership will contribute towards Indonesia’s efforts to provide much needed affordable housing.