Ciputra to build new business center in Jakarta

Publicly listed property developer PT Ciputra Property Tbk., through its subsidiary PT Ciputra Balai Property, plans to build a new business center with a total of Rp 300 billion (US$ 35.1 million) investment, a company executive says.

Ciputra Property director Artadinata Djangkar said on Thursday that the new business center, to be named Dipo Business Center (DBC), would be built on a 7,000-square- meter area on Jl. Gatot Subroto in Jakarta.

“The location is strategic for companies that do not want to have offices in the CBD but don’t want to be too far from it either,” Artadinata said, adding that DBC targeted IT, consultancy, creative, cargo, and freight and trading companies as future tenants.

The construction will start in the third quarter this year and is scheduled for completion by the second quarter of 2013.

The center will comprise 15 home offices and an 18-storey office building with a total building area of 40,000 square meters. The company is selling a home office from Rp 3.5 billion to Rp 4.5 billion and is selling office units starting from Rp 14.5 million per square meter.

“All home offices have been sold, while 60 percent of office units have been reserved,” Artadinata said.

DBC project director Rudi Hartono said the building would use energy-saving lamps and an air-conditioning system, and provide an Internet network and cable television.

Artadinata said the company would finance the project with the company’s own funds and revenue from pre-construction sales with a 20 to 80 ratio.

Ciputra Property is operating Hotel Ciputra in Jakarta and Semarang, Mal Ciputra in Jakarta and Semarang, and Somerset Grand Citra Jakarta.

The company is also constructing the Ciputra World superblock and high rise residential complex Ciputra World 2, both in Kuningan area in Jakarta.

The two projects are scheduled for completion by mid 2012 and mid 2014, respectively.

Artadinata said the company had two other new projects, but did not disclose more information.

He said that as of the second quarter, Ciputra Property booked a net profit of Rp 77 billion, similar to the same period last year. The firm is targeting to reach Rp 170 billion in net profits by the end of the year, up from Rp 155 billion last year. (swd)