ID/Elizabeth Gloria Brahamana & Kunradus Aliandu
The five-star Sofitel Hotel will soon be added to the list of luxury accommodations in the Nusa Dua complex on the resort island of Bali.
Agung Podomoro, one of the country’s most aggressive property developers, is behind the Rp 900 billion ($93 million) investment, made at the request of the Bali Tourism Development Corporation, which manages the complex.
The company has joined hands with Indonesian businesswoman Dewi Suprapto to build the hotel, Agung Podomoro’s vice president Indra Wijaya said in Jakarta on Sunday.
Podomoro, Indra said, will control a 75 percent stake in the hotel, providing Rp 675 billion to finance its development. The remaining funds will be provided by Dewi, who will control a 25 percent stake.
“We and our partners have already spent Rp 300 billion to build the hotel,” Indra said, adding that the Sofitel will, along with other hotels, house visitors to the upcoming Asia-Pacific Economic Cooperation meeting, which will be held in Nusa Dua in October this year.
The Sofitel Hotel will sit on 7.8 hectares of land in Nusa Dua, a tourist area managed and developed by the Bali Tourism Development Corporation (BTDC), a state-owned enterprise of Bali province.
Nusa Dua, located in the south eastern part of Bali, is home to hotels and meeting venues such as the Bali International Convention Center and the Bali Nusa Dua Convention Center.
Indra said Agung Podomoro will seek a bank loan to finance the hotel development. Indra did not mention how the company’s partner, Dewi Suprato, would finance the development of the hotel.
Ida Bagus Wirajaya, president director of BTDC said the company has been and will continue to invite more investors to build in Nusa Dua, Bali.
BTDC currently manages around 13 hotels with 4,000 rooms in Nusa Dua, Ida Bagus said.
Ida Bagus said the company is also mulling a plan to sell Rp 2.2 trillion of bonds within two years. The company will sell Rp 600 billion of three-year bonds, part of the larger Rp 2.2 trillion plan, in April this year. The company has named Mandiri Sekuritas, Danareksa Sekuritas and Bahana Securities as the financial adviser of the debt sale.
Proceeds from the debt sale will be used to partially finance the development of the Mandalika resort project in Lombok. The resort area, also managed and operated by BTDC, is located 16 kilometers from Lombok international airport and 40 kilometers from Mataram, the capital of West Nusa Tenggara province.
Agung Podomoro, meanwhile, aims to acquire five new projects this year to add to a handful of projects it took over in 2012. The costs of those acquisitions are not included in the capital expenditure budget of about Rp 4.5 trillion this year, said Indra in January.
Shares of Agung Podomoro fell 2.4 percent to Rp 400 on the Indonesia Stock Exchange on Monday.