Business

Summarecon eyes Rp 3.5
trillion in sales

With an encouraging result in the first quarter, publicly listed property developer Summarecon Agung (SMRA) expects to book a 17 percent increase in marketing sales this year to Rp 3.5 trillion (US$371 million), the company’s top executive says.

The company’s president director Johanes Mardjuki said in Jakarta on Thursday that he was optimistic the company would achieve the target due to an increase in sale revenues from Summarecon Serpong and Summarecon Bekasi township projects which are now under construction.

The company has set aside Rp 1.6 trillion for capital expenditure this year that will be used to finance infrastructure development in Summarecon Bekasi (about Rp 250 billion), the construction of Summarecon Mal Bekasi (Rp 550 billion), the construction of Scientia Square in Serpong (Rp 180 billion) and to buy land for the company’s new hotel project in Bali (Rp 750 billion).

“We are currently conducting feasibility studies for a hotel development project in Bali, which we are hoping to start by next year,” said Johanes.

The property developer booked Rp 814 billion in net revenue in the first quarter of this year, up 104 percent from Rp 399 billion in the same period last year and also recorded Rp 148 billion in net income in the first quarter, up from Rp 58 billion last year.

According to Johanes, the biggest contribution to first quarter revenue was derived from the sale of residential units that will account for 70 percent of the company’s total revenues this year.

Summarecon Serpong contributed 40 percent to the sales of residential units, while Summarecon Kelapa Gading and Bekasi contributed 30 percent, respectively, he said.

Since 1976, the property developer has developed a township area in Kelapa Gading, East Jakarta, spanning an area of 550 hectares with 30,000 houses, 2,000 ruko (shophouses) and 1,350 apartments. The township is also equipped with shopping centers including Mall Kelapa Gading and La Piazza Mall.

At present, the company has banked land of about 750 hectares in Serpong but only 240 hectares of the area has been developed for a township that comprises of 11,000 houses, 1,200 ruko and 900 house lots. Summarecon Mal Serpong, one of the commercial property projects in the area, finished the second phase of its development in October last year.

Summarecon Bekasi has launched five housing complexes and two clusters of ruko and is planning to construct 4000 houses, 6100 apartments and 1700 office. The project is expected to be finished within the next 10 years.

According to Johanes, the first phase of Summarecon Mal Bekasi, with an area of 80,000 square meters, will be ready for operations by the second quarter of next year.(nad)

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