Bulletin: Pakuwon's Liquidity Buffer Remains Ample Following Asset Acquisition

SINGAPORE (S&P Global Ratings) Dec. 2, 2020--S&P Global Ratings today said that PT Pakuwon Jati Tbk. (BB/Stable/--) has ample liquidity to absorb the Indonesian rupiah (IDR) 1.359 trillion acquisition of three commercial assets from PT Delta Merlin Dunia Properti. Pakuwon's liquidity post-acquisition remains healthy and sufficient to support the gradual recovery in operating performance over the next 12-24 months. The cash-funded acquisition will not materially alter Pakuwon's business profile because the assets' contribution to its overall real estate portfolio is small. The two retail assets in Central Java will contribute 13%-15% to the overall retail portfolio by net leasable area. Nevertheless, the acquisition will expand Pakuwon's footprint to Central Java, and we expect the company to reposition the commercial assets'

...December 2, 2020 SINGAPORE (S&P Global Ratings) Dec. 2, 2020--S&P Global Ratings today said that PT Pakuwon Jati Tbk. (##/Stable/--) has ample liquidity to absorb the Indonesian rupiah (IDR) 1.359 trillion acquisition of three commercial assets from PT Delta Merlin Dunia Properti. Pakuwon's liquidity post-acquisition remains healthy and sufficient to support the gradual recovery in operating performance over the next 12-24 months. The cash-funded acquisition will not materially alter Pakuwon's business profile because the assets' contribution to its overall real estate portfolio is small. The two retail assets in Central Java will contribute 13%-15% to the overall retail portfolio by net leasable area. Nevertheless, the acquisition will expand Pakuwon's footprint to Central Java, and we expect the company to reposition the commercial assets' tenant mix and improve the occupancy rates closer to its existing portfolio. The current average occupancy of the two new malls is at 90%. We estimate...

Bulletin