HK Land

HK Land: is exploring the devt of a new premium office tower in Jakarta with its local JV partner, as the developer taps growing demand for high-grade office space in Indonesia's capital. Mgt is confident that there is demand in Jakarta for another high-quality office devt. Adds, a lot of the existing stock is aging and expects to see the pattern of tenants migrating from older buildings to newer buildings continue in Jakarta. The potential new office project would be the 5th tower built on the Jakarta Land devt in the heart of the capital's central business district. Jakarta Land is a 50:50 JV between HK Land and PT Central Cipta Murdaya, an investment vehicle controlled by Indonesia's Murdaya family. HK Land's plan comes amid a period of souring investor confidence in Indonesia, which has been buffetted by slowing economic growth, high inflation and a widening current-account deficit. Its markets have also been hit in recent weeks by capital flight from emerging markets amid speculation the Federal Reserve was preparing to wind down its bond buying. But mgt remains upbeat on Indonesia's economy. Notes this will be a long term play, as Indonesia is one of its core mkts that boasts a huge population and growing middle class. The Jakarta Land site currently comprises four buildings yielding 1.4m sf of office space, and has an adjoining land parcel that can yield another 2.75m sf of mixed-use property. That means the site has enough space to house an additional "four or more large-scale office towers." Jakarta is HK Land's third-largest commercial market, accounting for about 9% of the developer's 8.25m sf of commercial net floor area. Hong Kong accounted for 59% while Singapore made up nearly 22%.