HK Land / Sinarmas Land

HK Land / Sinarmas Land: has signed a JV agreement with Bumi Serpong Damai (BSDE IJ), a leading residential developer in Indonesia, according to the Jakarta Globe. BSDE is 49.9% owned by Sinarmas Land, which is listed on SGX. HKL will take a 49% stake in the newly formed JV to co develop a 65 ha primarily residential project in Phase 2 of BSDE’s BSD City, a major private township devt located ~25km southwest of central Jakarta. Although the est invmt for the JV at ~IDR2.6t (~US$270m) is small relative to HKL’s financial position, the house believes HKL and BSDE could expand the scope of the JV in future. Sees this JV as complementary to HKL’s existing 50% stake in office-focused Jakarta Land. StanChart keeps at Inline, but raises TP to US$6.70 from US$6.50, as it rolls fwd valuation by 6mths to Dec ’13.