Issuer:  PT Duta Anggada Realty Tbk
Series: 001
Issue Rating:  Unrated
Status: Direct, unconditional, unsubordinated and unsecured Notes Issue
Issue Size:  TBD
Distribution:   As per Information Memorandum
Format: Reg S Bearer / Issuer’s SGD 160 million Multicurrency Medium Term Note Programme
Tenor: 3-year
Initial Price Guidance: 8.25% area
Coupon Payment: Fixed Rate, semi-annual, ACT/365 (Fixed)
Issue Date: [ ] August 2015
Maturity Date:  [ ] August 2018
Denomination: SGD250K
Governing Law:  Singapore Law
Listing: SGX-ST
Clearing:  CDP
Selling Restrictions: Sections 274 and/or 275 of the Singapore SFA
Bookrunners & Dealers: Credit Suisse & Maybank Kim Eng (B&D)

Credit Highlights

Proven track record as a developer: Since its establishment in 1983, PT Duta Anggada Realty Tbk (“PTDART”) has completed 26 projects comprising more than 1 million sqm of office, retail, residential and hospitality space. From a developer of prime CBD, residential product offerings and concepts that were marketed primarily to international expatriates living in Jakarta, PTDART has grown to develop prime Grade A office and retail space, and expansion into hospitality developments to commence operations in 2015.

Established by respected entrepreneurial family and led by highly experienced management team: PTDART is 44.94% owned by PT Duta Anggada, a corporate vehicle controlled by Hartadi Angkosubroto, the son of the founder of Duta Anggada Group, Dasuki Angkosubroto, who is a well-known and respected entrepreneur in Indonesia. Besides its core business is the property sector, the Group is also involved in other sectors like telecommunications, banking, leasing and insurance. The members of PTDART’s senior management team and board of directors have an average of more than 20 years of experience in the Indonesian property market.

Strong contribution of recurring income base which is set to grow further: For FY2013 and FY2014, recurring income accounted for 51.1% and 32.7% respectively of PTDART’s revenue. Its high quality Grade A office and retail buildings are key drivers of a relatively stable recurring income base. Its existing portfolio comprises 74% Grade A office space and 26% retail space. Its proven track record in maintaining high levels of occupancy rates (90% as at 31 Dec 2014, excluding Plaza Great River and STIE Panjaitan and PGJ), rental renewals (84% as of 31 Dec 2014) and revision rates (64% as of 31 Dec 2014, excluding Plaza Great River and STIE Panjaitan and PGJ), coupled with a long standing and high quality tenant base, also contribute to the stability of its recurring income contribution.

Portfolio gross asset valuation by Knight Frank of Rp 8.5 trillion (c. US$640 million) as of 31 December 2014, with 69% of portfolio by valuation located within the prime “Golden Triangle” area of the Jakarta CBD.

Strong cashflow visibility over 3-year bond tenor, driven by visible pipeline of development properties and additions to investment property portfolio. Icon Towers project in Jakarta CBD will be key driver of development income with net saleable area (“NSA”) of 158,628 sqm, while completion of Plaza Great River refurbishment and 2 new hotel projects will add to recurring income starting this year.

High quality tenant base that has occupied its properties for more than 15 years, including Citibank, Bank Negara Indonesia, Bank Central Asia, Vale Indonesia, Genting, Bank Mandiri, Bentoel Group, Maybank Kim Eng and Indofood.

Strong partnerships with leading hotel managers and contractors in the international property market including Hilton Worldwide Group and InterContinental Hotels Group.


A brave day to bring out a HY bonds and of an unrated small cap IDR 2.51 bio (SGD 255 mio) company. But then again, Singapore has the best bankers in town !

Market cap level comparable to Ciputra Properties (except Ciputra has heavy weight parent – Ciputra Development) and Modernland (rated). Bumi Serpong and Lippo Karawaci are both much larger names.

Good fortune on their side, 8.25% will be the highest coupon we have seen from a real estate name since Central China paid 10.75% back in Apr 2012.

Rated idA- by Pefindo I would say it is comparable to Modernland rated idA (upgraded in Oct 2014 and affirmed in Apr this year).

USD IDR Real Estate Names

Modernland  (B2/B/B) 9.75% 2019 (callable 2017) mid yield to worst 9.45% spread 8%

Lippo Karawaci (Ba2/BB-/BB-)6.125% 11/2020 (callable 2018) mid yield to worst 5.85% spread 4.7%

Bumi Serpong (Ba3/BB-) 6.75% 04/2020 6.55% spread 4.90%

Lippo has widened out since Ciputra issued in SGD but Ciputra remains at its 102 price highs giving us a yield of only 4.6 ish%. Didn’t I say Singapore has the best bankers ?

Ciputra New Issue Review :

Chinese property single B names like Sunac and unrated Shuion are yielding about 8.5% for 3 years in USD and thus this 8.25% might take off even though the credit spread is a tad tighter given that 3 year SGD interest rates at 0.52% higher than US rates !!

8.25% -1.77% = 6.48% credit premium

Which means that PT Duta Anggada is saving quite a bit of money today by issuing in SGD which is not such a bad thing because investors who have Ciputra will have the option to switch for a hefty 3.6% premium !!

Did I say Singapore has the best bankers ?