Mitsui Fudosan Expands Footprint in Indonesia by Entering into A Strategic Partnership (Residential Project) in Jababeka Sports City

September 1, 2022
Mitsui Fudosan Co., Ltd.

Mitsui Fudosan Co., Ltd. (Location: Chuo-ku, Tokyo, President, and CEO Masanobu Komoda) through "MITSUI FUDOSAN (ASIA) PTE. LTD." (Mitsui Fudosan Asia Co., Ltd., Location: Singapore), has entered into a strategic joint venture agreement with PT. Grahabuana Cikarang (Grahabuana Cikarang Co., Ltd., "GBC"), a 100% subsidiary of a major local developer PT Jababeka Tbk (IDX: KIJA) to participate in three residential & shophouse clusters. The three clusters are located at Jababeka Sports City within the Kota Jababeka township in the Bekasi Regency east of the Jakarta metropolitan area. This business will be jointly operated by GBC and Mitsui Fudosan Asia.

Artist Impression of Residential Clusters

Artist Impression of Jababeka Sports City

The 8.5Ha. (approx.) site is expected to yield approximately 808 units which comprises of landed houses and shophouses, targeting real local demand. The partnership reflects the group's continuous interest in creating spaces that focuses on health and wellness which had been exacerbated by the COVID pandemic. The project aims to create such health and wellness focused environment by developing 1-hectare sports hub facilities, such as mini golf, basketball courts, mini soccer, skate park, outdoor gym, hopscotch & giant chess, as well as kids climbing wall within the project.

Following the participation in Citra Lake Suites (condominium) and Citra Raya (landed houses), this will be the third residential project in Indonesia for the Group.

Indonesia is a high growth market where stable economic growth is expected. Coupled with a large population of approximately 270 million, demand for quality housing will continue to remain strong and the Group is continuously looking to expand our presence in the housing market. The Group also aims to acquire opportunities across various asset classes within Indonesia through its real estate development expertise.

Key Points of this Release

• Third residential project of the Mitsui Fudosan Group in Indonesia.
• First joint venture with GBC, a subsidiary of a major local developer, PT Jababeka Tbk (IDX: KIJA)
• Aiming to expand into other asset classes in Indonesia in the future

■Location

The project is located in the Bekasi Regency where major industrial parks are located and demand for housing especially in the middle-class is rising. The project site of this project is located approximately 35km east (approximately 1 hour by car) of central Jakarta. The site is located in KOTA JABABEKA which is a well-established industrial park that has been developed over 30 years since 1989 by a major local developer Jababeka. KOTA JABABEKA boasts a scale of approximately 5,600 hectares and is a complex township with housing, commercial facilities, golf courses and stadiums. Connectivity for the township is expected to be improved following the operations of the LRT and MRT which are expected to be opened in phases from 2023 onwards.

■About GBC

GBC, a subsidiary of PT Jababeka Tbk (IDX: KIJA), is one of the major Indonesian developers. The company has established a track record in developing quality townships such as Kota Jababeka.

■About Mitsui Fudosan's Overseas Business

The Group's long-term management policy "VISION 2025" aims to evolve Mitsui Fudosan into a global company. We target to continuously grow our overseas business. To date, we have expanded our business in Europe and the Americas, China, Taiwan, Southeast Asia, and India. In Indonesia, we will continue to source for assets in the residential, mixed use, hospitality, and logistics segment to further expand our business.

[Position]

Contributing to SDGs of the Mitsui Fudosan Group

https://www.mitsuifudosan.co.jp/enflish/esg_csr/
The Mitsui Fudosan Group promotes business with an awareness of the environment (E), society (S), and governance (G), in other words, ESG management, with the aim of becoming a society where people and the Earth both prosper, based on the philosophy of "coexistence and coexistence," "linkage of diverse values," and "realization of a sustainable society." By further accelerating our group-wide ESG-based management, we believe that we can contribute significantly to realizing Society 5 0 advocated by the Japanese government and achieving SDGs. In November 2021, we formulated the following group guidelines for realizing a carbon-free society and promoting diversity and inclusion. Going forward, our Group will continue working to resolve social issues through urban development.

[Reference]
・"Formulation of Group Action Plan to Realize a Carbon-Decarbon Society"
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1124/
・"Declaration on Promotion of Diversity and Inclusion and Policy for Initiatives"
https://www.mitsuifudosan.co.jp/english/corporate/news/2021/1129_02/

*The efforts of this release are contributing to the three goals of the Sustainable Development Goals (SDGs).