PT Ciputra Residence

completed

Ciputra Residence was formally established in Jakarta in 1989 and is one of three principal subsidiary companies of PT Ciputra Development Tbk (“Ciputra Development”). Ciputra Residence is 99.99% owned by Ciputra Development and has been developing property for more than 20 years. Ciputra Development has a strong reputation in the market and is viewed as a leader within the Indonesian property development sector.IFC proposes to support the Company via a Partial Credit Guarantee ("PCG"), which will provide credit enhancement for the Company’s proposed public bond issuance of up to IDR500 billion (approximately US$44 million) with tenors of up to 3-7 years. The size of IFC''s PCG is expected to be up to 20% of the total bond issuance.The proceeds from the proposed bond issuance are expected to be used to support the construction of low-rise houses and relevant ancillary facilities across Ciputra Residence developments mainly in Sumatra and Java. Land for development has either been previously acquired or will primarily be acquired by entering into joint operation partnerships with existing landowners. Since its establishment, the Company has been focused on the development of low-rise 2-3 floor residential housing in urban and peri-urban areas around major cities. Ciputra Residence is currently seeking to expand the development of three integrated township projects, namely CitraGrand City Palembang, CitraRaya City Jambi and CitraGrand City Pekanbaru as described below. In addition, up to ten small-scale residential and commercial building developments of less than 150 hectares each in Java, Sumatra and Kalimantan are expected to be supported through the PCG (the three integrated township projects and ten small-scale projects, together the “Project”). Ciputra Residence uses local small to medium-size construction contractors, building up to 1,200 houses and shophouses per year.The Company has two ongoing projects at advanced stages of development located in Jakarta (CitraGarden City) and Tangerang (CitraRaya). The PCG will support the development of a limited number of small scale residential and commercial properties within these developments.Key proposed projects CitraGrand City Palembang: located close to Sultan Mahmud Badaruddin II International Airport, the development is planned to provide residential accommodation for up to 5,000 families on a land area of up to 156 hectares. Construction commenced in 2007 with approximately ten percent of the area having been developed, providing houses to approximately 250 families. CitraRaya City Jambi: a joint operation development of a self-contained area with residential areas, infrastructure, a retail commercial district and recreational areas, located 12 km from the city center of Jambi and 18 km from the Sultan Thaha Airport. It is envisaged that the development will occur over a 30-year period covering a total area of 600 hectares and provide accommodation for up to 15,500 households. Initial construction commenced in late 2012. CitraGrand City Pekanbaru: located 10 km north of Pekanbaru''s city center, central Sumatra, covering an area of 403 hectares. The Company estimates approximately 100-150 houses to be built per year for a total of up to 1,050 homes in 7 years.