Indonesian PE Syailendra Group, Egypt’s Orascom, workers agency tie up for $250m affordable housing project
Jakarta, Dealstreetasia.com – Indonesian private equity company Syailendra Group, Orascom Housing Communities (OHC) of Egypt and workers’ social security agency BPJS Ketenagakerjaan have signed a memorandum of understanding (MoU) to develop an integrated affordable town for Indonesia’s low-income group on a 200-hectare land in West Java at a total investment of $200-$250 million.
The agreement was signed by BPJS Ketenagakerjaan CEO Elvyn G. Masassya, OHC key shareholder Samih Sawiris and Syailendra Capital CEO Jos Parengkuan.
Syailendra Capital intends to manage local participation into the project through a private equity fund structure. “This will be the first private equity fund structure in Indonesia that invests in residential housing project of such a scale,” Jos Parengkuan said.
The project will involve the development of low-rise residential buildings which can house up to 30,000 families.
Jos Parengkuan said, the project aims to build not only affordable housing for the low-income earners, but also provide better-quality living in an integrated, independent town that is environmentally friendly. The housing complex will be supported by facilities such as school, hospital, sports, worship places, water treatment, waste management and transportation.
“We are truly honored to have been given an opportunity to partner with BPJS Ketenagakerjaan and Samih Sawiris on this important project, which will not only contribute significantly toward the government’s One Million Housing Program, but more importantly will provide better-quality living for the low-income earners,” Parengkuan said.
Syailendra Group, through Syailendra Housing Communities Asia (SHCA) will invest a substantial amount of capital into this project and bring its expertise in the development of quality and affordable housing, Parengkuan added.
Orascom Housing Communities is the first Egyptian company in the region to focus on affordable housing space.
Established in January 2007, OHC was founded as a partnership between Orascom Hotels and Development (OHD), Samih Sawiris, Blue Ridge Fund and Equity International. Currently Samih Sawiris is the majority shareholder of OHC.
Source : http://www.dealstreetasia.com/stories/indonesian-pe-syailendra-group-egypts-orascom-workers-agency-tie-up-for-250m-affordable-housing-project-16617/