KUALA LUMPUR: The land value of Matrix Concepts Holdings Bhd's (MCH) first joint venture project in Jakarta, which will house the Menara Syariah Twin Towers, is expected to be higher upon completion.
The Menara Syariah Twin Towers are located in an area designated as an Islamic Financial District, which forms part of the 23.5-hectare International Financial District in Pantai Indah Kapuk 2 (PIK 2) Waterfront City, Jakarta.
It is sitting on 1.4 hectares of the 3.6 hectare plot and has a gross development value of US$250 million.
Menara Syariah Twin Towers is the first phase of MCH's participation in developing the Islamic Financial District in PIK2.
Upon completion, PublicInvest Research noted that MCH is looking to either dispose of one block or keep both for recurring income.
"We understand that MCH had initially expected at least 20 per cent margins if it disposed of the two towers outright.
"Now, we believe the value could be higher, given the land value alone is already transacted at three times its original cost (MCH's initial investment of US$31.75 million for a 30 per cent stake)."
MCH first mooted the project back in 2018 when it invested to develop an initial 3.6-hectare plot of land in PIK 2, which is developed by PT Fin Centerindo Satu, a joint-venture company between MCH and PT Bangun Kosambi Sukses, controlled by the Agung Sedayu Group and the Salim Group, and PT Fin Centerindo Dua, who are well-established conglomerates in Indonesia.
The Menara Syariah Twin Towers is a commercial and retail building with two office towers, each 29 stories high, and is designed to be a world-class business hub.
The two towers have more than a million square feet of gross floor area, providing workspaces for 5,000 office workers with coastal views of Jakarta Bay.
It is expected to be completed by the end of this year.
The research firm maintained its "Outperform" call on MCH with a target price of RM1.80.