Commercial & Industrial Property News Update

Indonesia - Ciputra Property Delves Into Hospitality

September 28, 2012

The publicly listed PT Ciputra Property (CTRP) will develop a resort complex in Bali, as well as two superblocks in Jakarta.

Ciputra Group subsidiary, CTRP, is making a foray into hospitality real estate development. The property development arm of the group announced on Wednesday that it would be embarking on a mega resort project in Bali.

President director of CTRP Chandra Ciputra said that the resort, which will occupy an 80 ha plot in the tourist hotspot, would consist of five hotels with five-star service, a shopping mall and an art centre. "We're expecting to start construction next year," he said.

With an estimated gross development value of Rp 3 trillion, the resort will be the company's first tourism-related project. CTRP is mainly known for developing superblocks, which covers offices, retail shops and hotels.

"This is an important step and a breakthrough project for us," CTRP director Artadinata Djangkar said of the Bali resort.

CTRP will also expand its property portfolio with the addition of two more superblocks located on Jl. T.B. Simatupang in South Jakarta and Jl. Puri Indah Raya in West Jakarta. Each superblock is understood to require about 3 ha of land.

"Due to limited CBD area in the city, we are looking at other areas. Two specific areas seeing rapid development are Jl. T.B. Simatupang and Jl. Puri," Artadinata said.

CTRP is the developer of the Ciputra World megaproject, a massive mixed-use development that will consist of 15 towers in total. The project will be undertaken in three phases, with Ciputra World 1 expected to be completed later this year.

World 1 consists of a shopping mall, apartment block, hotel, premium apartments, offices and a museum on 5.5 acres of land.

Construction is expected to commence soon for World 2, which will comprise two residential towers, a hotel tower and an office tower on 3.1 acres of land. The office tower is a 45-storey affair with a strata and lease marketing system. CTRP held a groundbreaking ceremony for the building, which is expected to cost Rp 1 trillion in development costs and to be completed by end-2015.

Rudi Hartono, director at CTRP said that pre-sales of Ciputra World 2 has reached about 80% of total available space. "Going by our marketing plan, about 45% of spaces in the office tower will be sold, while the remaining 55% will be leased. We will start offering leases this month," he said.

For this year, CTRP is expecting revenue of around Rp 902 billion with net profits of around Rp 228 billion.

Tags: Business space, Office for rent, Shop for rent

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