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Tag: Jardine

  • Modernland finds new stepping stone with Jardine group

    Modernland finds new stepping stone with Jardine group

    Indonesia’s promising property market has attracted multinational real estate firms to collaborate not only with domestic peers but also international partners. An alliance between the Astra group, Hongkong Land and Modernland Realty shows this well.

    Astra Land Indonesia and Mitra Sindo Makmur have created a joint venture to acquire 70 hectares of land in Cakung, East Jakarta, worth Rp 3.4 trillion. The collaboration was marked under an agreement inked on Oct. 12 in Jakarta.

    Astra Land is a joint venture between Astra International (ASII) and Hongkong Land, while Mitra Sindo Makmur is a subsidiary of Modernland Realty (MDLN). The new entity will develop the land for a project dubbed Jakarta Garden City.

    This should provide positive sentiments for Modernland, given the fact that the new partners are well-known firms in Asia. Astra is a well-known Indonesian conglomerate while Hongkong Land is a leading property investment, management and development group in Hong Kong, Singapore and mainland China.

    They are indirectly affiliated companies as Jardine Matheson sits as the main shareholder, owning more than 50 percent of shares in the two companies.

    While Astra has only three years of experience in the real estate business, Hongkong Land has laid foundations in Indonesia for over 30 years. Currently managing US$32 billion of assets in Asia, it has been operating in Indonesia since the 1970s.

    Under a collaboration with Central Cipta Murdaya, Hongkong Land built the WTC Complex in Sudirman, Jakarta, as its first project. It has also developed two other big projects in Indonesia, namely Nava Park (joint venture with Sinarmas Group’s Bumi Serpong Damai) and Anandamaya Residence (joint venture with the Astra group).

    Financially beneficial

    In its latest research report, Mandiri Sekuritas appraised the joint venture as it will provide security for Modernland in terms of marketing sales and earnings, in light of Hongkong Land’s established track record and experience.

    Furthermore, this action could benefit Modernland as the cash inflow from the transaction could reduce its debt ratio, especially as it was sealed amid the economic slowdown.

    * Bloomberg estimate

    As of the first half of 2016, Modernland had booked Rp 1.1 trillion in revenue, down by 18 percent year-on-year from Rp 1.35 trillion last year, due to fewer projects launched this year. This brought down net income by 88 percent to Rp 26 billion.

    Therefore, the newly formed joint venture with Astra and Hongkong Land in Jakarta Garden City will give better prospects for Modernland. As for Jardine Matheson group, the joint venture will augment its portfolio in the largest property market in Southeast Asia.

  • JV plans 20 Pizza Hut Myanmar stores

    JV plans 20 Pizza Hut Myanmar stores

    Hong Kong’s Jardine Group says its Myanmar joint venture will open up to 20 Pizza Hut restaurants across the new market within five years.

    With the first outlet just opened in Yangon, the Jardine CM Restaurant Group plans a second in early 2016 with a gradual expansion thereafter as it tests the market. If sales are high, the rollout may be sped up, according to a company spokesman.

    Jardine CM Restaurant Group is a joint venture between Jardine Restaurant Group Myanmar and City Mart Holding, which owns the Pizza Hut Myanmar franchise.

    Simon Arnold (left), Daw Win Win Tint, UMFCCI chair U Win Aung, Henry Yip and Vipul Chawla (right) hold up pizzas at the launch of Pizza Hut Myanmar.

    Vipul Chawla, MD of Pizza Hut, Asia for parent Yum! Brands, says the company sees huge potential across Asia.

    “Pizza Hut has 25 restaurants for every million people in the US. In Asia we have 11 restaurants per million people. Myanmar has huge potential with a population of more than 50 million,” he said during the opening ceremony for the first restaurant.

    Jardine Restaurant Group operates more than 680 Pizza Hut and KFC restaurants across Vietnam, Taiwan, Hong Kong and Macau.

    Henry Yip, Jardine Restaurant Group CEO, says 97 per cent of the first store’s staff are local and a majority of its ingredients are sourced locally.

    “We are also investing heavily in training and career development to ensure global best practices.”

    Recipes in the restaurant have been tailored to the local palate without removing options which those who have dined in Pizza Huts elsewhere in the world will find familiar.

    “We have researched the tastes preferred by local customers, and tailored our recipes accordingly,” said Simon Arnold, Pizza Hut Myanmar GM.

    Jardine will not be taking KFC into Myanmar – that franchise partnership was secured by Yoma Strategic Holdings, chaired by Serge Pun.