'Limitless JV for strategic growth'
Indonesian property firm PT Bakrieland Development said partnership with Limitless, a Dubai World subsidiary, was not restricted to financial reasons, but to create a platform to build international quality projects, a senior company executive said.
"There are several key elements of strategic partnership with Limitless, which are primarily intended for other benefits and not only for a financial reason," Yudy Rizard Hakim, Chief Corporate Affairs Officer, Bakrieland, said in an e-mailed statement to Emirates Business.
Hakim said one of the key elements of the partnership with Limitless was specifically to attain expertise in construction and development of large-scale projects, including Rasuna Epicentrum – one of the largest central business district project in Jakarta.
"This would allow us the possibility to develop projects in the Middle East or create a platform as to avail Bakrieland products to foreign markets in anticipation of changes in foreign property ownership regulations in Indonesia." Besides, Bakrieland remains confident that any possible results of Dubai World's position will not have, if any, significant impact on the company or its projects, he added.
In 2008, Bakrieland agreed to sell a 30 per cent stake in its subsidiary, PT Bakrie Swasakti Utama, to Limitless, for $110 million (Dh403.7m).
"We are all working on a process that will benefit and please all the stakeholders and at this moment, we are still pursuing this goal." He did not disclose the details of the talks. A Limitless spokesperson did not comment on the issue. However, in its 2009 annual report, Bakrieland said, "In 2009, the financial crisis had affected the Dubai World, the parent company of Limitless World International Services 6 Limited, which can affect the continuation of the settlement of divestment of PT Bakrie Swasakti Utama, PT Bumi Daya Makmur and PT Superwish Perkasa."
Limitless spokesperson, however, in November 2009 told this newspaper there had been no plans to sell stake in Bakrie Swasakti.
According to Hakim, Bakrieland has a solid balance sheet with a debt-to-equity ratio of 66 per cent and net gearing of 49.6 per cent as of December 2009, which provides ample room for the company to obtain financing facilities.
Hakim said the company has strong support from its shareholders, which is reflected in funding commitments to the tune of $100m.
"We are confident Indonesia has a great potential to become a platform for foreign investors in property investment," he added.