PCPD agrees to sell grade A office building in Indonesia for US$400 million

Pacific Century Premium Developments (0432) has agreed to sell a grade A office building in Indonesia for US$400 million (HK$3.12 billion) and expects to recognize a loss of HK$117 million before release of exchange reserve.

The 40-floor property, Pacific Century Place, in the heart of the financial hub of Sudirman Central Business District (SCBD) Jakarta, is tenanted by worldwide multinational companies, and has a gross floor area of approximately 93,316 square meters, the company said in a filing on Monday. 

The disposal enables the developer to realize its investment in the property at an attractive valuation, generating substantial cash proceeds that will bolster financial flexibility, the filing said.

PCPD intends to apply the proceeds for reducing its indebtedness to lower ongoing borrowing costs and allocate more resources to ongoing and potential residential projects in Japan, Thailand and Hong Kong and bolstering working capital, including but not limited to staff costs, rental and other overhead expenses of the group.