Sinar Mas Land Collaborates with Palari Group to Develop Real Estate Projects in the United States

JAKARTADAILY.ID - Sinarmas Land Limited, which is listed on the Singapore Stock Exchange, is expanding to the United States through a joint venture agreement with the Palari Group.

The two will develop a sustainable and technology-driven smart residential community in California.

The joint venture agreement was formalized through the signing of a strategic partnership by Michael Widjaja, Group CEO of Sinar Mas Land and Basil Starr, CEO of Palari on April 29, 2022.

The two companies are working together to develop sustainable residential projects and accelerate the development that Palari has established since 2014, including the world's first 3D-Printed Zero Net Energy Community located in Greater Palm Springs, California.

Sinar Mas Land Group CEO, Michael Widjaja explained, "The partnership with Palari opens up opportunities for Sinar Mas Land to expand our international footprint in building carbon-free, sustainable smart cities into the largest housing market in the United States."

“Sinar Mas Land focuses on providing innovative and sustainable solutions in its development. We continue to look for compatible partners to realize this effort," he said in an official statement quoted on Wednesday, May 18, 2022.

At the same time, Palari CEO Basil Starr added, Sinar Mas Land's vision is very much in line with Palari's, namely to become a leading developer in the United States for a community that focuses on sustainable technology.

“We are very pleased to announce our strategic partnership with Sinar Mas Land. Their successful and rich experience has a record of developing smart, sustainable and affordable cities,” said Basil Starr.

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For ownership, Sinar Mas Land acquired a 40% stake in the development of the project. Sinar Mas Land will bring the experience of developing BSD City independent townships and as a pioneer in housing cluster development to a number of Palari projects in the United States.

Housing in the United States is currently in deficit, largely because traditional construction has not developed for centuries, making such construction unpredictable, slow, and expensive.

In addition, labor shortages and material prices have also increased at an unprecedented pace. Even though the world is increasingly concerned with energy empowerment, the building construction process still accounts for almost 40% of carbon emissions and traditional construction is very wasteful with up to 30% of materials being wasted.

In this collaboration, both parties are committed to delivering modular construction technologies that will accelerate construction and reduce carbon emissions during the construction process.

The collaboration between Palari and Sinar Mas Land Group will address housing shortages by developing modern, sustainable and affordable homes in emerging markets, starting with California.