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Jakarta Post

Habibie’s $1b superblock completes first phase of construction, eyes foreign buyers

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, August 22, 2019   /   11:07 am
Habibie’s $1b superblock completes first phase of construction, eyes foreign buyers Pollux Habibie International Commissioner Ilham Akbar Habibie (center) and Pollux Properties Gen. (ret) Timur Pradopo (second left) pose for photographers in the groundbreaking ceremony of the Meisterstadt Superblock in Batam on Aug. 27, 2018. (JP/Fadli)

Publicly listed property developer PT Pollux Properti Indonesia completed on Wednesday the first phase of construction of a US$1 billion integrated mega-superblock, the Meisterstadt, in Batam, a joint venture with former president BJ Habibie’s family.

Under the brand Pollux Habibie International, the developer marked completion of the first phase of construction of the Meisterstadt by topping off its fourth apartment tower, Erlesen. Erlesen is to be one of eight apartment towers, a mall, a hospital and an office tower, which are expected to be completed in 2024 or 2025.

Pollux Properti sales and marketing director Maikel Tanuwidjaja said that from 10 to 15 percent of the Meisterstadt apartments’ buyers were foreigners, mostly from Singapore, Malaysia and China.

“Foreigners are our target market for our property in Batam,” he said. Most foreigners buying property in Batam are permanent workers with tax registration numbers in Indonesia and temporary stay permits (Kitas).

Strategically located between Singapore and the busy Malacca Strait, Batam is a common gateway for foreigners, especially tourists, wishing to enter Indonesia.

According to Statistics Indonesia (BPS), an estimated 938,000 foreign visitors have passed through Batam during the first half of this year, a 5 percent increase from the same period last year.

Most of Pollux Habibie’s buyers would be domestic, primarily from Riau Islands and the surrounding area, in addition to those coming from Jakarta and Surabaya, Maikel added.

In terms of sales, the Meistertadt has sold about 95 percent of the units in its first three towers, while the Erlesen Tower alone has sold 80 percent of its units.

Maikel said that most of the buyers had chosen two-bedroom apartments that start at Rp 800 million ($56,200) per unit. Meanwhile, Erlesen as the newest tower, set a higher price as it is to provide more luxurious facilities.

From all units that had been sold, some 60 percent of the buyers were investors who plan to rent to other people and the other 40 percent were end-users, he added.

First listed last year, Pollux Properti has allocated some $119.4 million for capital expenditure this year and has spent about 60 percent of it during the first half of this year.

The company is now developing other portfolios in Jakarta, West Nusa Tenggara and West Java in addition to its project in Batam. (asp)