Intiland Continues to Strengthen Property Market in Surabaya
Surabaya, (05/11) – The national property developer PT Intiland Development Tbk continues to strengthen its business position with the latest string of new projects. Aside from those in Greater Jakarta area, the company is also developing new projects in Surabaya.
Last month, Intiland commenced the development of Spazio Tower, the superblock project located in West Surabaya. The company is also hard at work in developing Praxis superblock located in Surabaya’s center of business.
The property development projects in Surabaya comprise four segments—the development of superblocks, residential area, industrial zone and property investment. The Surabaya projects also significantly contribute to the company’s performance.
Reaching the end of the first nine months of the year, the property development projects in Surabaya contributed Rp 648.8 billion. The amount is almost 50 percent of the total revenue recorded by Intiland which reaches Rp 1.3 trillion.
Sinarto Dharmawan, Intiland’s vice president and chief operating officer, said as the country’s second largest city Surabaya has a very prospective property market. The property market in the city has been in rapid growth for the last five years. This has been demonstrated from the presence of many property development projects in the city.
“Graha Natura and Ngoro Industrial Park projects contribute the biggest to the revenue,” said Sinarto.
Ngoro Industrial Park is the leading contributor with sales value of Rp 349.4 billion or 27 percent. At the same time, Graha Natura project contributed Rp 188 billion or 14.5 percent of the total revenue.
Based on the sources, development income from Surabaya projects reached Rp 593.5 billion or 45.6 percent of the total revenue. Recurring income, which comes from the management of Intiland Tower Surabaya, Spazio, and Golf Graha Famili & Country Club reached Rp 55.3 billion.
Sinarto said the company is preparing several new development projects in Surabaya. The latest project is Spazio Tower, a mixed-use building which is a part of Graha Festival superblock in West Surabaya. The project has its groundbreaking event held on October 3, 2014.
Spazio Tower stands on an area of 5,380 square meters right next to Spazio Phase I. The building has 20 floors with building area of 61,053 square meters. Eleven floors are designated for offices space, six floors for a hotel which also supports business activities, two floors for retail space, and five floors set for basement parking. Of the total 176 office units with floor area of 23,034 square meters, 60 units or 7,971 square meters are sold. The sales price for office space is Rp 32 million per square meter.
Another project is Praxis superblock project, a multifunction building development project located in Surabaya business hub. Praxis is designed as an integrated area which symbiotically merges with Intiland Tower building. Praxis consists of apartment units, office space, retail space, and a hotel. It will also have entertainment facilities, such as movie theaters, a multifunction room, a gymnasium and a swimming pool.
Marketed in 2014, Praxis has enjoyed warm welcome from the market in the city. By the end of Q3-2014, the company sold 190 units out of the total 302 apartment units. For office space, of the total 118 units, the company has sold 42 units. The sales price of office space unit in Praxis is from Rp 38 million to Rp 41 million per square meter, and that of an apartment unit is from Rp 30 million to Rp 33 million per square meter.
Sinarto said the potential held by Surabaya as the second biggest city in Indonesia in property market is ever developing. “Business activities continue to grow. Similarly, the need for space, for office, retail and residential is also developing. We, as a developer, will always try to provide the people with property products which are innovative and meet the demand of a modern society,” he added.