MNC Land in Full Gear for Expansion in Real Estate Sector

March 23, 2017, The Jakarta Post

MNC Group, the diversified conglomerate owned by tycoon and politician Hary Tanoesoedibjo, is intensifying the development of its property business under subsidiary PT. MNC Land in an effort to build another core unit beside media and financial services.

To achieve this objective, the publicly listed MNC Land plans to invest Rp. 2,6 trillion (US$ 195 million) to build the MNC Media Tower in Kebon Sirih, Central Jakarta.

The construction of the 57-story building is expected to be completed by the first half of 2018. Once completed, the property will be utilized as a mixed-used building, consisting of offices and the 222-room Park Hyatt Hotel. The hotel will be positioned on the top 20 floors of the building, while spaces below it will be utilized as work spaces.

“In the first half of this building, I want to gather all high-profile media companies and facilitate them to move their offices here. The remaining half of the building will be for the Park Hyatt hotel,” Hary said on Friday.

MNC Land vice president director Herman Bunjamin explained that the high-profile media companies also included international media and entertainment giants. “The tenants that we are targeting for offices are media companies such as Fox and Disney,” he told reporters.

From the total allocated investment, 60 percent will be used to build the hotel, whose room sizes range from 54 square meters to 400 sqm.

“By combining the traditions of Jakarta with modern design elements, we hope to make the hotel a special place for both our discerning global travelers and those local to Jakarta,” David Udell, Hyatt’s group president for Asia Pacific, said . MNC Land has several ongoing property projects, such as MNC Lido City in West Java.

The project, which will be built on an area of 3000 hectare wil become an integrated area consisting of a theme park, golf course and a signature Trump Hotel.

Hary, founder and chairman of the United Indonesia Party (Perindo), has been known as the business partner of United States President Donald Trump.

Partnering with Trump Hotel Collection, a subsidiary of Trump Organization, the group is also developing MNC Bali Resort, a 106-ha luxury resort in Tabanan, Bali.

The six-star resort will be constructed starting from the third quarter of 2017 and is expected to be completed within three years.

Other than those signature projects, MNC Land is also developing several hotels, residential projects, apartments and office buildings such as the One East Penthouse and Residences Collections in Surabaya, which feature Oakwood Hotel and Residences, Hary previously said that MNC Group is planning to invest Rp. 30 trillion in the next five years to fund the group’s expansion in property, financial services and media.

The group has two production houses, namely MNC Pictures and Dubai-based MNC International Middle East Limited. If combined, the total assets of both companies reach Rp. 1.21 trillion.

In the banking sector, this year, the group plants to acquire a local bank and merge it with MNC Bank.

The acquisition is set to be carried out by MNC Group’s financial arm, MNC Kapital Indonesia, which owns 39.2 percent of shares in MNC Bank.

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