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Ascendas in JV with Indonesian firm to build mixed-use development in Greater Jakarta
IN its first major foray into Indonesia, Ascendas Group has tied up with a local partner to develop a mixed-use project in Tangerang, Greater Jakarta.
Under a joint-venture agreement with PT Metropolitan Karyadeka Development (MKD), the two companies will hold equal stakes in a 9.7-hectare development comprising offices, apartments, retail and supporting amenities within Metland Cyber City.
Phase 1 of the project spans 1.3 hectares of land, with construction slated to begin next year. There will be a mix of residential, apartments, offices and supporting amenities covering a total gross floor area of about 130,000 square metres.
Ascendas South-east Asia CEO William Tay said that this development, located in the centre of established suburban communities, is designed to cater for a variety of industries associated with Indonesia's next stage of growth.
"Leveraging MKD's in-depth local knowledge and insights, we are able to tailor the development to suit the needs of businesses and communities in Tangerang," he added.
MKD is a joint-venture company between PT Metropolitan Permata Development - a wholly owned unit of Indonesian-listed property developer PT Metropolitan Land Tbk - and privately owned group Karyadeka. It is developing Metland Cyber City, which will be launched in the third quarter of this year.
Tangerang is the third-largest urban area in Greater Jakarta, 10km south of Soekarno-Hatta International Airport, 3km to Jakarta city's Outer Ring Road, and is close to the Jakarta-Merak Highway.
Ascendas president and group CEO Manohar Khiatani said that there is strong demand for quality mixed-use developments in Greater Jakarta amid an emerging middle class and the expansion of businesses outside the city centre.