Expansion, Mega Manunggal Property Will Build Three Modern Warehouses

By : Ahmad Fadli And Aldi Firhand. A | Thursday, May 24 2018 - 23:37 IWST

PT Mega Manunggal Property, Tbk (MMLP) plans to build three modern warehouses in Cikarang, Depok and an undetermined location. For this business expansion MMLP requires about Rp1 trillion. (Photo: INDUSTRY.co.id)

INDUSTRY.co.id - Jakarta - PT Mega Manunggal Property, Tbk (MMLP) plans to build three modern warehouses in Cikarang, Depok and an undetermined location. For this business expansion MMLP requires about Rp1 trillion. The total capital expenditure (capex) funds that will be prepared will be from internal cash funds as well as from loans.

Head of Corporate Finance and Investor Relations of Mega Manunggal Property, Asa Siahaan, said that the capex utilization ratio is around 30 percent for land acquisition and the rest for construction. It is estimated that the process of building a modern warehouse will be completed in the next 1.5 - 2 years. To meet the aforementioned needs, MMLP plans to seek loans to banks through other sources of financing.

"For expansion we need another funding source one of which already approved in this GMS, we prepare for the option of additional capital through Rights (preemptive rights), we already have facilities from banking but we also open the option to obtain loans from other banks , but we have not been able to discourse (it has not been decided how nominal), "Asa said after the AGM at Santika Hotel, East Jakarta, Thursday (25/5).

For the two warehouses to be built it is definitely located in Depok, West Java and in Cikarang. Currently, it has signed a contract for the construction of 2 new warehouses because there is already a tenant commitment that will use it, one of them is the giant ecommerce company Lazada. For the construction of these two warehouses, MMLP estimates need Rp700 billion including land acquisition.

While for one more warehouse can not be decided because of waiting tenant who is committed to cooperate. Talked about business expansion outside Jabodetabek as in Bali, Sulawesi, Sumatra and others, MMLP admitted will not be in a hurry. It will still see the future development.

"We think all of the locations are potential, but now we have no commitment to build in that location, we will wake up when there is a contract," he said.

For information, property developers who focus on modern warehousing business until now has 8 warehouses. The focus is a warehouse for one tenant and part for multi tenants. Update for now MMLP already has 300,000 hectares space spread over Jabodetabek