Media Outfit MNC Plans to Spend Rp 1t on New Jakarta Building
Listed media company Media Nusantara Citra plans to spend up to Rp 1 trillion ($110 million) to construct a building in the capital for its affiliate companies, including Saban Capital Group, a Los Angeles-based investment firm.
The building will have 45 floors and cover 1,064 square meters in Central Jakarta near MNC Tower, the office of MNC’s parent company Global Mediacomm and other affiliates.
“We expect this new building to become a media center, so that foreign media like Fox, Disney and Saban can have offices over there,” said Hary Tanoesoedibjo, group president and chief executive of MNC.
The company will seek to finance 70 percent of funding from bank loans, he said.
Saban Capital Group last year bought 5 percent of Indonesia’s MNC for Rp 692.3 billion.
The investment firm, which specializes in media, entertainment and communications, will acquire 692.3 million MNC shares, 5 percent of MNC’s total outstanding shares, at Rp 1,000 per share, though it can also purchase an additional 346 million shares within 27 months.
Saban Capital was established in 2001 by Haim Saban, the founder of Fox Family Worldwide, which he owned in equal partnership with News Corporation until its sale to the Walt Disney Company in October 2001.
MNC appointed its affiliate property developer company, Global Land Development, to construct the building, which is expected to be completed in the first half of next year.
MNC is aiming to provide buildings to accommodate its expanding media business. Apart from the media center, it is currently constructing a news center at a cost of Rp 400 billion.
MNC runs three national free-to-air television networks — RCTI, MNC TV and Global TV — with nearly 40 percent audience share, according to Nielsen research. It also owns a newspaper, a tabloid, a magazine, radio networks, online media, an advertising agency and a talent management agency.
Last month, property firm Cushman & Wakefield reported that central business district office space occupancy had risen 63 percent in 2011 compared to a year earlier.
MNC shares fell 1.5 percent to close at Rp 1,340 in Monday trading in Jakarta.