Development of Intiland’s Office Market in Surabaya

Surabaya (04/02) – Property developer PT Intiland Development Tbk (Intiland; DILD) strengthens its commitment to always provide superior property products that are safe and support a healthy lifestyle for the community. In the current Covid-19 pandemic, the Company sees the need for a healthy and comfortable office area as a new trend in the community and the business world at large, especially in Surabaya.

The Company currently has several projects of office buildings in Surabaya, with two buildings located in the city center, namely Intiland Tower and Praxis, and two other buildings located in the business district of West Surabaya, namely Spazio and Spazio Tower.

Harto Laksono, Marketing Director of PT Intiland Grande, the Company’s subsidiary for development projects in Surabaya, explained that the demand for the office market had contracted and decreased since last year during the Covid-19 pandemic.

However, in the beginning of 2021, there were signals that demand for office space in Surabaya was gradually bouncing back towards a positive trend. One of them is the Spazio Tower, a strata-title office building developed by the Company that has been successfully absorbed by the market.

“Until now, 70% of the office units at Spazio Tower have been sold since its launch, and most of the units have been handed over to the buyers. There are more than 60% that are used by the owners themselves,” claimed Harto.

Several national and multinational companies have their offices set up at Spazio Tower, including some manufacturers, suppliers, digital start-ups, and more. One company’s office even occupies an entire floor in this building.

Harto explained that the target market for Spazio Tower is the end users. A majority of them are owners of companies or factories in Surabaya. Their offices therefore are not used for operations, but rather as a representative office to meet investors or potential customers of their products before visiting their respective factories.

The Company believes that the positive response from the market has been due to the rapid development in West Surabaya with good infrastructure and transportation development. Spazio Tower, a further development of the Spazio building which has been operating since 2012, is an integrated office area equipped with various supporting facilities, ranging from banking, retail and F&B areas, to provide more preferences for consumers who require modern, complete, office buildings with easy access to various modes of transport.

Harto Laksono explained that Spazio Tower has been designed as a modern office building with a healthy and environmentally friendly concept that is applied to all aspects of the building. Designed with open space of ​​up to 60%, this building is equipped with a variety of attractive features, such as windows that can be opened in each unit, and open corridors to maximize air circulation in the building.

This is in line with one of the surveys conducted by Gensler in 2020, which found that most workers expect their office environment to be efficient and similarly flexible when they have to carry out work from home activities. The main issue is that employees should not be in a closed room, and can enjoy natural ventilation.

Other facilities that have been prepared at the Spazio Tower are two floors designated for the F&B retail area and open communal space on each floor that can be used by visitors as a lounge or meeting point with company guests or colleagues.

In addition, innovative features are also applied to the Spazio Tower office unit. This office building offers more freedom for owners to manage energy use independently and separately from other units. Thus, besides being able to reduce operational costs, this can also provide freedom of working hours for its users.

“The healthy concept of the office units that we offer can give prospective customers more confidence in assuring the health factors on site. This is a good opportunity for us to reintroduce the concept of a healthy office that we had prepared long before the pandemic,” said Harto.

In addition, another important factor is that there are several advantages that can be enjoyed from working in an office area. Besides being able to boost employee productivity and increase focus, working in the office can reduce stress, ensure work-life balance and create synergy and collaboration with the team.

Spazio Tower is a modern mixed-use building developed by the Company at the center of a business and commercial development area in West Surabaya. Occupying a land area of ​​approximately 4,600 square meters, Spazio Tower offers office space ranging from 52 to 2,000 square meters.

Providing 11 floors of strata title office space covering an area of ​​28,496 square meters, Spazio Tower is also equipped with function hall facilities, the Kayumanis hotel which occupies the top seven floors, and two floors of F&B retail area covering an area of ​​5,077 square meters, which are currently occupied by several F&B tenants, among others Papa Ron’s Pizza, Parcwest, and Mitch & Elle. In addition, the Spazio Tower retail area is also directly connected to Spazio and Spazio Terrace which have a variety of tenant choices such as restaurants, cafes, coffee shops, salons, and karaoke.

Apart from Spazio Tower, the Company is also developing Praxis, a modern office area with a healthy concept in the center of Surabaya. Praxis is an integrated mixed-use & high rise development that occupies an area of ​​1.1 hectares. Located right in the same area as Intiland Tower Surabaya, Praxis applies an innovative mall concept in office buildings.

The four floors of this office are equipped with escalator facilities and a vehicle parking area on each floor, which can facilitate the mobility of visitors and employees. In addition, Praxis also offers office units equipped with façade displays towards the main corridor, making it easier for companies to display their products.

“The concept of an office-mall hybrid, we can safely say, is currently only applied here in all of Surabaya. This concept is certainly suitable for companies that deal directly with their customers, such as banks, airline offices, tour & travel agents, and so on,” explained Harto further.

Praxis offers a strata title office area of ​​17,400 square meters with a variety of top-of-the-top facilities, including an adequate vehicle parking area, direct connection with 28 floors of modern apartment buildings, and three floors for F&B retail area which has been filled with several well-known restaurants and cafes. Also present is the SIM Corner public service center on the LG floor, inaugurated last November.

Various large companies engaged in the capital market, consulting, and financial services also have offices in this building. In addition, the current availability of serviced office units with a total area of ​​260 square meters has also been leased out, due to the high interest in the downtown office market. Currently, the Company is preparing to develop the second phase of its serviced office, which is projected to be ready in March this year.

Harto described seeing a positive trend in the need for office space in Surabaya since the end of 2020. He assessed that customers are again starting to think that it is now safe to work in office buildings again.

In anticipation of this potential, the Company has prepared several special strategies to attract consumers and investors, such as an investment program with a 30 percent rental guarantee offering in three years, ease of payment for the 20 percent down payment divided into 4 installments, special interest promotion with BCA investment loan, and the availability of finished units with floors and ceilings. ***