JAKARTA. Publicly listed developer Modernland Realty will raise Rp 553.75 billion (US$46.59 million) in a non-preemptive rights issuance after obtaining approval from shareholders on Thursday as well as a two-year permit from the Financial Services Authority (OJK).

Modernland corporate secretary Cuncun Wijaya said that the company would issue 1.25 billion of new shares — or 10 percent of the company’s enlarged capital — priced at Rp 443 each, with the funds to be used to finance its existing projects.

He said that the company had yet to identify standby buyers and to define when it would issue the shares.

“Currently, we are focusing on developing our industrial estate in Cikande [Serang, Banten] and our residential project in Jakarta Garden City in Cakung [East Jakarta],” he said.

Modernland is currently developing a township, Jakarta Garden City, on 370 hectares of land, after acquiring 100 percent ownership of the project from Singapore-based Keppel Land Pte Ltd., late last year.

The company hopes to secure Rp 1.7 trillion in marketing sales from the township and Rp 1.1 trillion from the industrial estate, while looking to secure another Rp 1.2 trillion from selling land plots.

Singapore-based AA Land Pte Ltd. currently holds a 28.8 percent stake in Modernland, while Bumi Perkasa Permai and the public hold 7.16 percent and 64.04 percent respectively.

Editor: Hendra Gunawan