Intiland Earns Rp319 Billion in Marketing Sales
Jakarta (21/04) – Intiland reported income of Rp319 billion from marketing sales in the first quarter of 2017.
The figure does not include the sales of 20.3-hectare Ngoro industrial estate at Rp386 billion.
Intiland’s Director of Investment and Capital Management, Archied Noto Pradono predicts that the national property market would gradually turn for the better this year. The Company is focusing on executing its marketing and promotion strategies to hit the intended mark and achieve this year’s marketing sales target.
“According to 2017 business plan, we plan to launch two mixed-use and high rise projects in Jakarta and Surabaya in the second semester of this year. We project the two project will contribute significantly to this year marketing sales,” said Archied.
The biggest contributor to the 2017 first quarter marketing sales was mixed-use and high rise development segment with Rp118 billion. The sales from this segment contributed to 37 percent of the total marketing sales. Another big contributor was investment property segment, which is also the company’s source of recurring income with marketing sales reaching Rp82 billion or 26 percent of the total.
Archied said the company would continue to boost income from investment property segment to increase recurring income contribution. The growth in this segment is projected to provide operational stability and growth to the company in a long run.
“South Quarter leased offices going into operation and the rental of our standard factory buildings at Ngoro Industrial Park become the driving force for our recurring income contribution. The conclusion of two office projects—Praxis and Spazio Tower in Surabaya—will also increase the contribution from this segment,” Archied added.
The residential segment contributed Rp68 billion or 21 percent of the total marketing sales. The industrial estate segment contributed Rp50 billion or 16 percent of the total marketing sales.
Based on the types, development income reached Rp236 billion or 74 percent of the total. Meanwhile, recurring income contributed Rp82 billion or 26 percent of the total marketing sales in the first quarter of 2017.
Other updates, at the end of 2016, the company signed a joint venture agreement with GIC, a foreign investment financing institute owned by the government of Singapore. According to the joint venture agreement, the company and GIC share a 60-40 composition for the ownership and management of South Quarter mixed-use office area. Moreover, along with the agreement, the company and GIC have a plan to develop the second phase of South Quarter, namely the launch of two condominium towers in the fourth quarter of 2017.
The company is open strategic partnership with parties that share the company’s philosophy and growth target. Joint venture is one of the growth strategies that Intiland adopts as it carries a strategic value to synergize the company’s strength and experience in developing world-class property products.***