Buy 2 Hartono Mall And Yogyakarta Marriott Hotel During The Pandemic, Pakuwon Jati Aren't Afraid Of Blunders?

Photo: Doc. Marriott Hotel Yogyakarta

JAKARTA - In the midst of the decline in the modern retail industry including shopping centers due to the COVID-19 pandemic, the property company PT Pakuwon Jati Tbk is bold enough to take risks to expand.

How could it not be, the issuer coded PWON shares immediately bought 3 property assets at once. The assets in question are Hartono Mall Yogyakarta and Hartono Solo Baru, as well as Hotel Marriot Yogyakarta.

The two Hartono Mall are the biggest shopping centers in Solo and Yogyakarta. Meanwhile, Marriot Yogyakarta is one of the five-star hotels located in the Student City.

This step is quite risky because indeed the hotel industry and shopping centers have become one of the sectors that were hardest hit during the COVID-19 pandemic. Even so, observers project there is a big step behind the acquisition of the company which is located in East Java.

Executive Director of Indonesia Property Watch Ali Tranghanda said, the courage to purchase property assets during a pandemic like this, has definitely been taken into account by Pakuwon.

"There are other calculations related to the investment value and the future market. And maybe the asset prices of Hartono Mall and Marriott are under market prices," Ali Tranghanda told VOI, Tuesday, December 1.

Some analysts also think that Pakuwon's strategy is right, because the company will enjoy the results once the pandemic ends. The acquisition step will make Pakuwon's performance prospects better because it can increase revenue in the long term.

In the long term, Pakuwon will get a significant increase in its performance. With the acquisition of 3 assets at once, of course Pakuwon's recurring income will increase in the future.

For malls, previously Pakuwon already had Tunjungan Plaza Mall, Pakuwon City Mall, Royal Plaza, Grand Pakuwon Food Junction, Pakuwon Town Square, Food Festival, Pakuwon Trade Center, Pakuwon Mall. These are all in Surabaya.

While in Jabodebek, Pakuwon has Blok M Plaza, Gandaria City, Kota Kasablanka Mall, and Pakuwon Mall Bekasi. As with the acquisition of Hartono Mall Yogyakarta and Hartono Mall Solo Baru, Pakuwon is trying to expand into the Central Java region.

Buy from Duniatex

Pakuwon through its subsidiary purchased 2 Hartono Mall and 1 Marriott Hotel. For this transaction, the company that owns Kota Kasablanka Mall and Gandaria City has spent up to IDR 1.36 trillion.

Quoted from Pakuwon's disclosure of information on the Indonesia Stock Exchange (IDX) website, Monday November 30, Director and Corporate Secretary Pakuwon Jati Minarto Basuki said that the reason for the company to carry out the transaction was to diversify the geographical business outside Surabaya and Jakarta.

"Geographical diversification to obtain a potential new growth base outside of Surabaya and Jakarta," said Minarto.

The assets purchased by Pakuwon were previously owned by PT Delta Merlin Dunia Properti as the owner of the building and Sumitro as the land owner.

Delta Merlin Dunia is an entity of the Duniatex Group. The sale and purchase transaction was carried out by Pakuwon Jati through their subsidiary, namely PT Pakuwon Permai.

Pakuwon owns 67.13 percent of shares in the subsidiary. As for the Rp1.36 trillion fund, according to Minarto, came from the company's internal cash.