Intiland Improves Performance with Development of Projects
The company has taken this strategy by focusing on big-scale and long-term projects, notably those in strategic locations lying along infrastructure routes and near public transport facilities.
There are currently dozens of projects being developed divided into four development segments, namely: mixed-use and high-rise, residential area and industrial estate, as well as investment property comprising lease of commercial space for offices or retail, golf and sport club management, areal management, and warehousing.
Intiland’s vice president and chief operating officer, Suhendro Prabowo said the mixed-use & high rise projects have significantly contributed to the business growth. Intiland is currently working on several projects in this segment, which are located in close proximity to public infrastructure development projects.
“The development of mass infrastructures and transportation has become a catalyst for the property market. This is especially true for mixed-use development projects located in big cities, like Jakarta and Surabaya. This segment is currently the biggest contributor in sales,” Suhendro said.
One of Intiland’s development projects located along the major infrastructure and public transportation route is Aeropolis, a mixed-use project set near Soekarno-Hatta International Airport. At the moment, an airport train line from Jakarta and Tangerang is under construction, making Aeropolis an area closest to this public transport access.
Aeropolis is a 105-hectare mixed-use development project which carries the concept of synergy with the airport development. It boasts facilities for residential, office, commercial, as well as hotel and warehouse area. Its latest development in TechnoPark, a 35-hectare modern and integrated warehousing area. As of September 30, Aeropolis recorded sales of Rp146 billion, or 10.4% of the total the company’s marketing sales of Rp1.4 trillion.
“TechnoPark provides the solution for the need of modern warehousing whose demand is predicted to increase,” Suhendro explained.
Another development project is South Quarter, an integrated office area located on TB Simatupang corridor, South Jakarta. This development is set near Mass Rapid Transit (MRT) station and access to airport toll road. Two others which are also located near MRT stations are Serenia Hills residential complex and Intiland Tower in Jakarta.
The company is also focused on the completion of its big-scale projects. One of these is the uniquely-designed Regatta condominium at Pantai Mutiara, North Jakarta. In September 2016, the company held the topping off ceremony for the phase II of the project. This concluded the construction of the main structure.
“Regatta phase II features three towers with a total of 558 residential units. Our estimation is that the project will be completed in mid-2017,” Suhendro said.
Regatta is one of the company’s big-scale and long-term projects. Occupying an area of 11 hectares, the project development is divided into three phases. At the moment, Regatta has completed the phase I which consists of four apartment towers. Following the completion of phase II, the company will continue with the phase III of the work which will construct three apartment towers and a hotel.
Another project is 1Park Avenue in South Jakarta. This has also entered its completion phase, and the company estimates that the handing over process can start in late 2017. This year the company launches two new projects: The Rosebay and the second phase of Graha Natura residential complex, both located in Surabaya.
“We continue to observe the market next year, and will be selective in launching new projects,” mused Suhendro.
Throughout the first nine months of the year, the company recorded marketing sales of Rp1.4 trillion or 55% fof the target set early in the year. The mixed-use & high-rise segment is the biggest contributor with Rp571 billion or 40.6% of the total marketing sales. The next is residential segment which contributed Rp530.7 billion or 37.7%. The industrial zone segment recorded marketing sales worth Rp81.3 billion or 5.8%, while the investment property segment contributed Rp223.6 billion or 15.9%.
Throughout 2016, the property market has not fully recovered. Welcoming 2017, the company is optimistic that the situation will further improve. A series of government policies which are deemed pro-market, notably tax amnesty policy, policy regarding house ownership by expatriates, a decrease in Bank Indonesia loan interest rates, and loosening of LTV (loan to value), is seen as potential to act as the market catalysts. The company plans to launch three new projects in 2017: two mixed-use and a high-rise projects located in Jakarta’s central business district and in Surabaya’s latest integrated zone.***