RODA set to acquire up to five companies
The Jakarta Post, Jakarta - 11/01/2012
Property developer PT Royal Oak Development Asia Tbk (RODA) plans to take over three to five property companies this year, having acquiring eight property companies last year.
RODA president director Nio Yantony said on Tuesday that his company had allotted between Rp 500 billion (US$55 million) and Rp 1 trillion for the acquisitions.
“The acquisitions will be funded from internal cash, bank loans and third-party funds collected from pre-sales of proposed property,” he told a press conference in Jakarta.
Nio refused to disclose the names of the five companies, but said that it would buy three of them in the first quarter of this year.
“Negotiations are underway,” he said, adding that the acquisitions would be conducted in the remaining quarters of this year.
The company is also targeting to increase its revenue from last year’s Rp 88.95 billion to Rp 1.2 trillion this year, Nio said.
He said RODA had targeted to increase its net profit from Rp 3.79 billion last year to Rp 150 billion this year, he added.
Last year, the company acquired eight property companies in a deal worth around Rp 1.19 trillion.
The acquired companies include PT Multi Pratama Gemilang, PT Tiara Sakti Mandiri, PT Fortuna Cahaya Cemerlang, PT Bangun Megah Pratama, PT Simpruk Arteri Realty, PT Lumbung Mas Sejahtera, PT Indo Prakasa Gemilang and PT Unggul Kencana Persada.
Last year’s acquisition was funded through bank loans and the sales of its 99.86 percent share in PT Transpacific Mutual Capital (TMC) to PT Swadayanusa Kencana Raharja worth Rp 730 billion.
“TMC is a financial unit, insurance company. It was not contributing to us. Therefore we decided to sell it and focus on property,” Nio said. (fem)