Property developer Duta Anggada Realty (DART) is among top gainers in the last few weeks of 2011. The stock surged from below Rp200 to Rp485 as of January 13, 2012. At this price, DART has market capitalization of Rp1.3 trillion or about 1.67 x equity as of September 30, 2011.
The company booked net profit of Rp54 billion in nine months of 2011, surged almost 50% from the same period in 2010 on higher sales revenue. Sales revenue increased 28% to Rp318.8 billion in nine months of 2011, while operating profit surged 55% to Rp141 billion.
Deutsche Bank AG, Singapore is listed as largest shareholder of the property developer with 33.73% shares. This might be related to loan facility provided by Deutsche Bank to DART of US$160 million few years ago.
The company’s operation, however, is still in the hands of Angkosubroto Family (Gunung Sewu Group). Hartadi Angkosubroto is president commissioner of the company, while his son Randy Angkosubroto is director.
Deustche provided US$160 million loan at LIBOR + 5.5% in July 2007, reportedly to finance St Regis project in Jakarta. Duta Anggada and Starwood did sign management agreement in 2007, but construction delayed substantially. Have you checked progress of this project lately?
In January and November 2010, DART accelerated payment of Deutsche facility of US$93 million, leaving the balance of US$66 million. How? Well, Bank Panin provided US$60 million loan at SIBOR + 7.64% in October 2010. Earlier in November 2009, Bank International Indonesia (BII) provided Rp500 billion to refinance Deutsche Bank facility.
Interestingly, at the same time, Gunung Sewu’s other property unit, PT Farpoint Prima, expands its portfolio. Farpoint acquired some major assets in recent years, including Menara Budi, which has been converted into Verde Apartment (258 units), Kuningan Persada (apartment), Kemang Club Villas, S Widjojo Center (now renamed Sequis Center) and Menteng Regency (60 units of apartment).
Farpoint has also developed commercial buildings Harco Pasar Baru, Hayam Wuruk Plaza, and Harco Glodok.
Husodo Angkosubroto, Hartadi’s brother, is in charge of Farpoint. His daughter Honey Angkosubroto is now CEO of Farpoint.
The question, are these property units (Duta Anggada and Farpoint) operated completely separate from each other, especially in financial issues? Is it a result of distribution of Dasuki Angkosubroto’s family treasures?
Disclosure: NO POsition in stocks mentioned in this article.
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