Summarecon Rights Issue 3.6 Billion Shares, Strengthen Working Capital And Business Development

Summarecon EGMS. (Photo: Doc. Summarecon)

JAKARTA - The property developer, PT Summarecon Agung Tbk (SMRA), has held an Extraordinary General Meeting of Shareholders (EGMS), with the agenda of approving an increase in capital with pre-emptive rights (PMHMETD) or a rights issue.

Summarecon issued a maximum of 3.61 billion shares or 25 percent of the paid-up capital, with a nominal value of IDR 100 per share. Summarceon's President Director, Adrianto P Adhi, explained that the proceeds from the rights issue are expected to improve performance and competitiveness.

"The proceeds from the rights issue will be used to strengthen the capital structure, debt payments and working capital to accelerate the company's business development, either directly or indirectly through its subsidiary entities," said Adrianto, in a written statement, Thursday, April 1.

In line with the company's mission, Summarecon, which has 45 years of experience in the property world, continues to develop its business to provide optimal value for all stakeholders. Summarecon is currently developing integrated cities in several areas, such as Kelapa Gading, Serpong, Bekasi, Bandung, Karawang, Makassar and Bogor.

The Summarecon business unit, among others, in the property development sector, currently has developed seven integrated city development projects, namely the Summarecon Kelapa Gading area, Summarecon Serpong, Summarecon Bekasi, Summarecon Bandung, Summarecon Emerald Karawang, Summarecon Mutiara Makassar and Summarecon Bogor.

Then the investment and property management business unit currently operates three shopping centers, namely Summarecon Mall Kelapa Gading, Summarecon Mall Serpong, and Summarecon Mall Bekasi with a total gross floor area (GFA) of approximately 300,000 square meters.

In the recreation and hospitality business unit, Summarceon has Club Kelapa Gading, The Springs Club Summarecon Serpong, Harris Hotel Kelapa Gading, POP! Hotel Kelapa Gading, Harris Hotel Bekasi, Movenpick Resort & Spa, Jimbaran Bali and St. Hospital Carolus, Summarecon Serpong.

In the midst of very challenging national and global economic conditions due to the impact of the prolonged COVID-19 pandemic, Adrianto said Summarecon remained productive and scored fairly good marketing sales. In 2020, Summarecon managed to record marketing sales of IDR 3.3 trillion.

Projection for 2021, SMRA is optimistic that it will be better, especially with the COVID-19 vaccine program and regulatory support from the government, such as loosening the property LTV ratio and disbursing indent mortgage to 100 percent, as well as VAT for government-borne property.