Dubai’s Limitless may bow out of Jakarta project

Dubai World unit mulling options over real estate development, says partner Bakrieland
Dubai’s Limitless may bow out of Jakarta project
The Rasuna Epicentrum real estate complex was initially due for completion this year. (Image for illustrative purposes only)
By Bloomberg
Wed 22 Jun 2011 11:47 AM

PT Bakrieland Development, Indonesia’s second-biggest
property developer by assets, said its partner Dubai World may pull out of a
real estate project in Jakarta and expects a decision within three months.

Limitless, a property developer owned by Dubai World, agreed
in September 2008 to invest in the project, valued at $1.7bn at the time, and
has delayed its investment following the global credit crisis, Bakrieland’s
chief executive officer Hiramsyah Sambudhy Thaib said.

Limitless said it is assessing its options for the venture.

“We’re trying to accelerate the progress again” after a
delay in the development, Thaib said in an interview in Singapore Tuesday. “We
are now discussing the possibility of them pulling out of the deal. We are
really hoping that we can move this project faster, after decisions are made.”

New investors may help revive the Rasuna Epicentrum
apartment, office and retail project located in one of Jakarta’s busiest
business districts, which was initially expected to be completed this year,
Thaib said.

Bakrieland, which is forecasting a 2012 completion, may
divide Limitless’s stake into smaller portions to attract more investors should
the company decide to pull out, Thaib said.

“We continue to assess options for this project that are in
the best interests of our stakeholders,” Limitless said in an emailed statement.

In Dubai, the Middle East’s worst-performing property market
in the last three years, Limitless and other developers are restarting stalled
projects that are nearest to completion in the most attractive locations.

Limitless plans to restart work on four office and
residential buildings in the Galleries development in Dubai next year, adding
more than 600 apartments and one million square feet of office space, Bahaa
Abouhatab, head of projects for Limitless, said earlier this month

Dubai, the second-biggest of the seven sheikhdoms that make
up the United Arab Emirates, sought neighbouring Abu Dhabi’s help after the
global crisis pushed property prices down by more than half and frozen credit
markets forced some state-owned companies to delay loan payments. State-owned
Dubai World signed a final agreement to restructure $25bn of debt in March.

Limitless invested in Rasuna Epicentrum three years ago as
its first development in Indonesia in a bid to expand overseas.

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