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Bakrieland Development, Indonesia’s second-largest property developer, said it has other investors who are interested in joining its Rasuna Epicentrum project in the capital, should Dubai company Limitless withdraw as its partner.

“There are many investors interested in the Rasuna project,” Bakrieland chief executive

Hiramsyah Thaib told the Jakarta Globe on Sunday. “Where else can you find 16 hectares of land bank in Jakarta’s central business district except here?”

The company has not decided which investors to pursue, giving Limitless the chance to continue the partnership, he said, declining to name potential investors.

“We are waiting for the decision in the next three months,” Hiramsyah said. “Limitless will decide whether to pull out or stay in the project.”

Hiramsyah also said if Limitless withdrew from the project, it will not affect the company’s profitability this year because the project is at least a couple of years from completion. “Our net profit goal this year remains the same, targeted to grow by 30 percent,” he said.

Limitless, a subsidiary of Dubai World, agreed in 2008 to invest $110 million to help develop parts of Rasuna Epicentrum, a project that involved transforming 53.5 hectares of land in Jakarta’s Kuningan area into apartment buildings, condominiums, stores and sports facilities. That includes 16 hectares still to be developed.

The whole project, started in 2006, was scheduled for completion in 2013 at a total price tag of Rp 20 trillion ($2.32 billion).

“Out of $110 million agreed, Limitless so far has only paid $33 million,” Hiramsyah said. If the Dubai-based company chooses to stay, its stake in the project is secured by the amount that it has paid, he said.

Hiramsyah said the developer may slice Limitless’s stake into smaller parts to attract more prospective investors to invest in a specific part of the project.

“We want to diversify [the partnership],” he said. “And the investors might also consider things such as the rising land price. With the global economy as it is right now, investors might hesitate to invest more than $100 million in one project.”

Maxi Liesyaputra, an analyst with BNI Securities, also held the view that other “investors will surely take up the opportunity” if Limitless withdrew. “It is a good project and is located in a very strategic place in Jakarta.”

Bakrieland, with the recent sale of Rp 3 trillion in shares to stockholders, can finance the project alone or take out loans, Maxi said.
In its financial statement, Bakrieland’s debt-to-equity ratio as of March 31 was 0.53, slightly lower than it was in December, at 0.55. 

Two entertainment centers were recently completed in the Rasuna project, joining the 17 apartment buildings, each 30 storeys, in the complex.

Bakrieland also builds hotels, resorts, toll roads and water treatment centers. Its earnings in the first quarter were Rp 48.1 billion, up 56 percent from the same period last year.