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iversified real estate developer Pakuwon Jati is looking to maintain its off-plan sales this year through the development of several new projects amid weak consumer purchasing power in the property sector.

The property developer, which focuses its constructions in two big cities, namely Jakarta and Surabaya in East Java, plans to book Rp 700 billion (US$52.81 million) to Rp 900 billion in off-plan sales from the three new projects it plans to build toward the end of this year.

The target for these new projects is almost one third of a planned Rp 3 trillion in off-plan sales for the whole year of 2016.

“We will launch two new offices, one in Jakarta and another Surabaya, and hopefully one condominium in Surabaya,” Ivy Wong, Pakuwon Jati director of business development, said on Monday.

In the fourth quarter of 2016, the company plans to develop a high-rise condominium at Pakuwon City in Surabaya. The condominium will have 850 units, which will be marketed at a price of Rp 500 billion to Rp 600 billion per unit.

“This project is catering to the middle-class segment. Our purpose is to develop a commercial area at Pakuwon City,” she said.

The second project is a new office tower at Kota Kasablanka, South Jakarta, to be developed in the third quarter of this year, with saleable area of 49,000 square meters and leasable area of 33,000 sqm.

The company is also to begin developing another office tower in Tunjungan City, Surabaya, with a saleable area of 23,000 sqm and leasable area of 15,000 sqm; construction will start about the same time as the new office tower in Jakarta.  

Pakuwon Jati expects to achieve the remaining off-plan sales through its existing property portfolio, including superblocks Tunjungan City and Supermal Pakuwon Indah in Surabaya, Blok M Plaza retail shopping center and Somerset Berlian serviced apartments in Jakarta.

To continue expanding and acquiring more land around its existing projects, the firm has allocated Rp 2.5 trillion in capital expenditure (capex) this year from internal cash and bank loans. As of March, it had used Rp 852 billion of the funds, said Pakuwon Jati director Minarto.

 From the financial aspect, Pakuwon Jati aims to increase its revenue by 19 percent — the same growth rate as last year — to Rp 5.5 trillion from Rp 4.6 trillion.

“Net profit, however, will depend on the exchange rate. We hope it will grow in line with our top line growth,” Minarto said.

In 2015, the company’s net profit declined by 4.7 percent to Rp 1.4 trillion from Rp 1.47 trillion in the previous year.

During an annual general shareholder’s meeting held in Jakarta on Monday, the company paid out
Rp 216 billion in dividends or 15.3 percent of the company’s net profit of Rp 1.4 trillion last year