Indonesia's Ciputra eyes up to $300 mln in REITs

in the region.

JAKARTA Jan 15 (Reuters) - Indonesian property firm PT Ciputra Property Tbk (CTRP.JK) plans to issue $250-300 million in real estate investment trust units (REITs) in the next one or two years, a top company executive said on Tuesday.

Candra Ciputra, president director of Ciputra Property, told reporters the proceeds from the REITs would be used to finance its expansion in a number of Indonesian cities.

"We will issue REITs in Indonesia over the next year or two with a total value of $250-300 million. The issuance will be used to finance our expansion for the next five years," Ciputra said.

It will be the first REITs issuance in Indonesia but the second REITs issuance by an Indonesian company.

Ciputra's rival, Lippo Group, has two Singapore-listed real estate investment trusts, and plans to launch more.

First REIT (FRET.SI), which is backed by Lippo's Indonesian hospitals, raised $64 million in its initial public offering in 2006, while Lippo-Mapletree Indonesia Retail Trust (LMRT.SI), a joint venture with a unit of Singapore state investor Temasek Holdings [TEM.UL], raised $356 million in its IPO last year.

Declining interest rates have buoyed the Indonesian property sector and Lippo's chief executive told Reuters in recent interview that property prices in Southeast Asia's largest economy were still lagging behind those in its regional peers. (Reporting by Nury Sybli, writing by Harry Suhartono, editing by Sugita Katyal)