Pacific Star Development's unit signs MOU with Indonesian developer on waterfront project

PACIFIC Star Development Ltd has partnered an Indonesian developer to develop a waterfront project in Jakarta.

Pacific Star's wholly-owned subsidiary, PSD Singapore Pte Ltd, has signed a non-binding Memorandum of Understanding (MOU) with PT Kukuh Mandiri Lestari (KML) to jointly develop mixed-use high rise developments on 10 hectares of prime seafront land in Pantai Indah Kapuk 2 (PIK 2) in Jakarta, Indonesia.

PIK 2 marks the second phase development and extension of the Pantai Indah Kapuk project and will be developed into an integrated township combining residential, commercial, hospitality, private schools, hospitals, and recreational facilities. The development would include waterfront homes, office precincts, and landscaped gardens.

"Pursuant to the MOU, the parties shall negotiate the terms of the proposed joint venture in respect of the development of PIK 2. The specific terms for the potential joint venture shall be set out in definitive agreements to be entered into by the parties at a later stage," Pacific Star said in a Singapore Exchange filing on Tuesday.

The 1,000 hectares PIK 2 property development project, which is master developed by KML, is a 50-50 joint venture between two established Indonesian developers which have "strong portfolios of notable developments and businesses across Indonesia".

"The potential joint venture is subject to, among other things, the execution of the definitive agreements in relation to the potential joint venture and there is no certainty or assurance that the definitive agreements will be entered into or that the potential joint venture will take place," the company said.

Pacific Star Development last traded on Friday and closed at S$0.161.