Itochu Corp. has agreed with PT Sinar Mas Group, on a new acquisition of 200 hectares (ha) of land for developing Industrial Park in Karawang International Industrial City (KIIC, in Indonesia), which is a joint venture operated by ITOCHU and Sinar Mas Group, in order to secure industrial land that meets the needs of Japanese manufactures, eager to expand their business in Indonesia. KIIC is located 55 km away from CBD Jakarta (about one hour east via expressway), and approximately 130 companies are operating their factories in total development area of 1,400 ha, including the additional land acquisition. This year, KIIC marks the 20th anniversary from its inception in 1992, and more than 80% of the customers are Japanese oriented companies due to a better quality of an estate management and administration for the past 20 years. KIIC also has advantages of various facilities to support the customers (such as 160 rooms of serviced apartments, two Japanese restaurants, three banks, convenience stores, and sports facilities) and started the ready build factories (RBF) to satisfy diversified expansion demands.(RBF; land area of 5 ha and Gross floor area of 27,000 sqm). ITOCHU will strive actively to expand its businesses with partners, focusing Indonesia as one of the strategic areas for real estate investment and development in Asia.

Coal India Ltd. (CIL) has put on hold its plans to acquire foreign assets and has halted discussions with foreign companies. According to people close to the matter, the company does not intend to fresh talks nor does it have any plans of inviting fresh expressions of interest. Coal India was in talks with Peabody Energy Corp. for acquiring its Wilkie Creek mine in Australia, Alpha Appalachia Holdings, Inc. (Massey Energy Co.) and PT Sinar Mas Group. An official from CIL stated, “Coal India discontinued talks with foreign majors because the coal ministry asked it to make sure that it adheres to a 12% internal rate of return for all investments that it undertakes in acquiring overseas assets. The assets we were planning to overtake did not offer such returns and we were forced to discontinue talks. We do not also intend to invite fresh expressions of interest so that this 12% rate of return can be obtained.”

Sojitz Corporation will expand the Greenland International Industrial Center (GIIC), an industrial park located in Deltamas City, Indonesia. Sojitz is developing Deltamas City jointly with the PT Sinar Mas Group. The GIIC will be expanded from the 400 ha currently available for sale in its first phase by an additional 300 ha on adjacent property to meet the demand for land to expand production lines in conjunction with Japanese and other companies establishing operations or increasing production in Indonesia, where the manufacturing industry is undergoing remarkable growth. The second phase of development will add 600 ha to the 700 ha from the first phase for a total of 1,300 ha. The phase one area of the GIIC is currently available for sale, and more than 30 companies in the motorcycle and automobile parts, consumer electronics, and consumer goods industries have decided to establish operations there and have already purchased 300 ha. The influx of foreign companies from Japan and other countries to Indonesia continues to grow, and a decision was made to convert a 400 ha lot adjacent to the phase one area into industrial property and make it available for sale. The additional parcels will be transferred in phases starting in about April 2012. This addition will make it possible to meet diverse customer needs for parcels ranging from 1 ha to 100 ha.