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Perennial buys Sanctuary City for US$15.6m; to develop site in Sentul City into residential development

MAINBOARD-LISTED Perennial Real Estate Holdings on Thursday said its wholly-owned subsidiary Perennial SL has acquired Sanctuary City Pte Ltd from an unrelated party for US$15.6 million.

With the sale, Perennial will hold Sanctuary City's 60 per cent stake in PT Bhakti Bangun Harmoni (BBH), of which the latter wholly owns a 246,982 square metre land parcel in large-scale master-planned township Sentul City, in the greater Jakarta area.

The property developer said that the move is in line with its strategy to invest in high-growth emerging markets, which complements its portfolio of assets which are predominantly in China and Singapore.

The site - 50 kilometres south of Jakarta - will be jointly developed with PT Cipta Harmoni Lestari, which holds the remaining stake in BBH.

BBH will develop the site into a development "with a variety of residential properties, including landed houses and condominiums, with a total gross floor area of at least 147,000 sq m and over 1,700 residential units", it said.

It is also accessible by highway to the Indonesian capital and is located eight kilometres from the Sentul City station along the Light Rail Transit, which is expected to begin operations in 2020.

In a filing with the Singapore Exchange, Perennial said the total development cost for the site of over 1.6 trillion rupiah (S$153.4 million) is expected to be funded through residential sales, external borrowings and internal funds.

Perennial said: "Within Sentul City, there are numerous amenities, including an upcoming shopping mall, existing educational institutions, a hospital, dining options, hotels, golf clubs and other entertainment facilities. This has attracted middle- to high-income residents, some of whom work in Jakarta but choose to live in Sentul City."

Perennial shares closed flat at S$0.86 before the announcement.

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