November 10, 2017

Intiland Eyeing More Potentials in Surabaya

The Company is set to develop the potentials available in Surabaya, East Java. In the city, Intiland is hard at work developing diverse property products—from residential, offices and commercial, to industrial estates.

Surabaya (10/11) – The national property developer, PT Intiland Development Tbk (Intiland, DILD) continues to strengthen its performance with its existing projects or by launching new ones. Trailing the marketing success of its new project, Fifty Seven Promenade in Jakarta, the Company is set to develop the potentials available in Surabaya, East Java. In the city, the Company is hard at work developing diverse property products—from residential, offices and commercial, to industrial estates.

Intiland’s vice president director and chief operating officer, Sinarto Dharmawan said the property market in Surabaya has very good prospects. Being the second biggest city in Indonesia and the center of economy and business in the eastern part of the country, Surabaya’s property market is continuously experiencing positive growth, in line with the development of economy and infrastructure in the region.

“The market is responding well to our property projects. As a developer, we endeavor to cater to the needs for property products of our customers, like home and commercial space, as we want to give added value to today’s lifestyle,” Sinarto further said.

The property market in Surabaya plays a strategic role in Intiland’s business prospects. In this city, the company has been developing various innovative products, starting from residential areas, office buildings, apartments, industrial estates, commercial and retail space, as well as golf course and sports facilities. 

The Surabaya market contributed Rp787 billion to Intiland’s marketing sales for the period of January-September 2017, or 26 percent of the total marketing sales, which stood at Rp3 trillion.

Sinarto admitted there was a big challenge faced by the company in Surabaya throughout the year. The company also feels the impact of the downward trend in the market demand, especially for products in the mixed-use & high-rise segment, such as apartment, office and commercial space.

Nevertheless, Sinarto is optimistic the property market will rebound. The demand for industrial estate, for example, grows this year with the company reporting the sales from the 28-hectare Ngoro Industrial Park in Mojokerto valued at around Rp531 billion.

The company also continues to develop several new big-scale projects. For the mixed-use & high rise development segment, for instance, Intiland is completing the construction of Praxis and Spazio Tower projects.

Located in Surabaya business hub, Praxis development project has now entered the completion phase with Intiland targeting to hand over the units in the second semester of 2018.  Praxis is a mixed-use project comprising apartment, office, hotel and commercial area. The company has so far marketed 202 out of the total number of 295 apartment units.

The next development is Spazio Tower, which is located in West Surabaya and is integrated into Spazio office complex. Spazio Tower carries the concept of 24-hour office area, and comprises strata title office space, retail area and a hotel.

Spazio Tower boasts concept that combines the advantages offered by a strip mall (ruko), such as the flexible operating hours, the use of electricity and air conditioners based on needs and office facilities, like representative and spacious office work space and strata title ownership. 

“Having an office at Spazio Tower proves to be advantageous; the tenant can benefit from the electricity and air conditioning systems, which are installed independently at each office unit. This concept helps improve the disadvantages of utilizing a ruko unit as an office,” explained Sinarto. 

At the moment, the construction work of Spazio Tower has reached 50 percent completion, and the company is targeting the completion of the project in the second semester of 2018. The company has sold 12,10 square meters out of 28,496 square meters total office area.

“We believe the need for office space continues to grow along with the growing business and industries in the city. Spazio Tower is here to answer to the demand for office space which is strategically located, flexible and eco-friendly,” said Sinarto. 

As for the demand for residential, Intiland offers several choices: The Rosebay, Graha Golf and Graha Natura. The Company has commenced the construction work of The Rosebay and Graha Golf, both located inside Graha Famili residential complex, and both projects have received positive response from the market.

Another development project currently in progress is Graha Natura. The residential complex offers new clusters—Morning Glory, Mahogany, Garden Ville, and Small Office Home Office (SOHO) commercial units. From January to September 2017, Graha Natura contributed Rp109 billion to the company’s income from marketing sales.

Since last year, Intiland has started the second phase of the construction, and launched Edenia cluster, which comprises 200 units.  The cluster offers several types of two-story houses, with land area from 90 to 144 square meters, and building area from 74 to 149 square meters.

In the near future, the company will focus on developing mixed-use & high rise segment. This segment provides answers to the limited and astronomical price of land, and the need of the urbanites for residence.

With property products that meet the need of the customers, the company is optimistic that the Surabaya market will continue to grow. Correspondingly, Intiland has plans to develop other big-scale projects in Surabaya for 2018.***