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OUE buys prime land in South Jakarta CBD for 1.63 trillion rupiah

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Real estate player OUE has inked a deal for land in South Jakarta's central business district (CBD).

REAL estate player OUE has inked a deal for land in South Jakarta's central business district (CBD).

Its subsidiary will pay 1.63 trillion rupiah (S$150 million) in promissory notes for some 8,000 square metres of plots zoned for commercial use, "free and clear of all encumbrances", in a conditional sale and purchase agreement with Asiatower Sudirman on Tuesday.

The board said that the transaction is not expected to have a material effect on the net tangible assets or earnings per share of the group for the year to Dec 31.

The deal was in the ordinary course of business, it added, with the value reached on a willing buyer, willing seller basis that took into account the location of the land and its floor area ratios, among other factors.

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Under the terms of the conditional sale and purchase agreement, the OUE unit is to pay 10 per cent of the deal price within 30 business days from the agreement being signed. The rest of the payment is to come on the closing date, which would usually be about one year later.

OUE ended 0.65 per cent lower on Tuesday, at S$1.53, before the announcement.