Ciputra to break ground on Rp 1.5t projects in Palu, Medan
Jakarta Post - 13/07/2012
Publicly listed developer PT Ciputra Surya, a subsidiary of property giant Ciputra Group, is set to start two projects totalling Rp 1.5 trillion (US$159 million) as early as next month.
The first project is the development of a residential complex in Palu, Central Sulawesi, called CitraLand Palu, which will have a total of five sub-units.
“We will launch the first phase of CitraLand Palu in August,” Ciputra Surya president director Harun Hajadi said on Thursday.
CitraLand Palu’s first phase of development will cover 78 landed houses, according to Harun. A total of 500 houses are scheduled to be built on 22 hectares land.
Harun said CitraLand Palu would cost around Rp 500 billion, which would be supported by Ciputra Surya’s internal cash.
Ciputra Surya is also set to launch CitraLand Bagya City, which will consist of residential areas, a hotel and a commercial and office complex in Medan, the capital of North Sumatra. CitraLand Bagya City will be developed on 65 hectares of land with total investment topping more than Rp 1 trillion, according to Harun.
“We will need around Rp 80 billion for the early stage, which includes the development of the infrastructure, including roads and drainage,” Harun said, adding that the project would kick off in October.
CitraLand Bagya City’s residential areas will boast 200 houses that will be sold at prices between Rp 400 million and Rp 1 billion. Ciputra Surya is expected to break ground on the first phase of the development of CitraLand Bagya City in October.
Harun said the development of CitraLand Bagya City would be a joint venture, in which his company held a 50 percent stake. He declined to reveal the partner in the joint venture.
Ciputra Surya is aiming to book Rp 1 trillion in revenues this year, up by 24 percent from Rp 805 billion in 2011. The company reaped Rp 211.77 billion in revenues in the first quarter of the year, a 40 percent increase compared to Rp 151.02 billion in the same period last year. The company’s net profits were Rp 52.68 billion in the first three months of the year.
According to Harun, Ciputra Surya’s marketing sales reached Rp 1.13 trillion at the end of the first half of the year, mostly from sales of spaces in CitraLand Surabaya, a commercial project of Ciputra World Surabaya, as well as residential and business complex sales in CitraLand Denpasar.
Buoyed by its marketing sales achievement in the first half of the year, the company was confident it would be able to meet its full year target of Rp 2.1 trillion despite concerns about the 30 percent minimum down payment requirement for mortgages went into effect in June.
“We haven’t seen the impact so far because we focus on high-income people. However, we still have concerns about the down payment because most people now seek loans to purchase houses,” Harun said.
About 60 percent of Ciputra Surya’s clients used credit facilities to buy houses, he added.
Shares in Ciputra Surya (CTRS) were unchanged at Rp 1,980 apiece on Thursday. CTRS shares jumped by 127 percent from its price in early January at Rp 870.