TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Mega projects still money tree for Ciputra

Booming economy: A tower under construction in a business area in Jakarta on Wednesday

Mariel Grazella (The Jakarta Post)
Jakarta
Thu, February 7, 2013

Share This Article

Change Size

Mega projects still money tree for Ciputra

B

span class="inline inline-center">Booming economy: A tower under construction in a business area in Jakarta on Wednesday. The House of Representatives has allocated Rp 201.3 trillion (US$20.73 billion) for infrastructure development to boost economic growth to 6.8 percent this year. JP/R. Berto Wedhatama

The money machines of property developer PT Ciputra Property (CTRP) continue to be their two mega projects, Ciputra World 1 and 2, which the company expects to contribute at least 70 percent to total marketing sales this year.

Artadinata Djangkar, the director of PT Ciputra Property, said that the company booked Rp 2.1 trillion (US$217 million) in marketing sales in 2012, 18 percent of which came from recurring income.

“This number, although unaudited, has surpassed our initial target of Rp 1.5 trillion,” he said on Monday.

He added that in the same year, the developer earned Rp 608 billion from unit sales at their Ciputra World 1 superblock project. Ciputra World 1 is the company’s 5.5-hectare superblock complete with offices, premium apartments, hotels and a mall located in Kuningan, South Jakarta. Construction work began in 2008.

The developer reported that it had sold 60 percent of the 88 luxury apartments in Raffles Residences Jakarta, and 90 percent of the 136 apartments in myHome Apartment.

Artadinata added that the developer earned another Rp 1.1 trillion from the sale of units at its other superblock project, Ciputra World 2.

Ciputra World 2, located near Ciputra World 1, is a 3.1-hectare superblock replete with serviced apartments, condominiums, hotels and offices. Construction work began in 2011.

The developer reported that it had sold 90 percent of 349 condominiums in The Orchard Satrio and 85 percent of the condominiums at The Residence. The developer also sold 45 percent of space available under strata title at Ciputra Office Tower.

Artadinata further said that the developer expected to repeat last year’s strong performance in 2013.

“We have significantly raised our targets this year because Ciputra World 1 will swing into full operation. We have won tenants for our mall,” he noted.

He added that the developer aimed to augment its sales by 6 percent year-on-year to Rp 2.3 trillion this year, with Ciputra World 1 and 2 contributing at least Rp 900 billion and Rp 800 billion, respectively.

He further noted that the company sought to earn Rp 1.9 trillion in net revenues and Rp 590 billion in net profits this year.

Artadinata added that the firm would utilize past earnings from the two superblock projects, besides bank loans, to fund their Rp 1.97 trillion capital expenditure this year.

“We will use Rp 783 billion of this to finance further construction of Ciputra World 1, while another Rp 460 billion will go to Ciputra World 2,” he said.

The remainder, he added, would go to the company’s other projects, including the construction of budget hotels.

“We are planning to conduct four groundbreakings in the first quarter of the year,” he said, adding that the developer would run projects in Cilegon, Bandung and Yogyakarta.

He went on to say that another major project under planning this year was the construction of two premium hotels in Bali, given the promising market there.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.