South Korean construction company GS Engineering & Construction has signed a 50-50 joint venture agreement with Vasanta Group, Indonesia’s leading developer, to construct a residential complex for 1,445 households in western Jakarta, the company said Tuesday.
Vasanta Group will invest land it owns, while GS E&C will put about $20 million into the complex construction dubbed “City Gate 88,” which is expected to yield some $200 million in sales.
“We look forward to creating synergy with Vasanta Group. We will do our best to supply high quality housing at a reasonable price to Indonesian customers,” said Kim Kyoo-hwa, chief of GS E&C’s housing and development business group, at the signing of the agreement.
The signing took place last month at the site where the complex will be constructed. The event was attended by Kim and Vasanta Group Chairman Tri Ramadi.
An artist’s impression of the City Gate 88 residential complex that GS E&C and Vasanta Group are to construct in western Jakarta, Indonesia (GS E&C)
It is expected to take about six years to build the complex that is to consist of five 25- to 30-floor buildings in Daan Magot, a new in-demand residential area in western Jakarta, the company said. Western Jakarta is preferred among middle and upper-class Indonesians due to access to the city along with an outer ring road that opened in 2014.
GS E&C has been expanding its presence in the Indonesian construction market, starting with the completion of a $750 million petrochemical plant there in 2011, followed by the shopping mall AEON Mall BSD City worth $140 million in 2013.
By Kim Bo-gyung (email@example.com