Jakarta, (30/7) – Indonesia’s property developer, PT Intiland Development Tbk (Intiland), continues to strengthen its business with the launch of the company’s latest projects. The company managed to improve its financial performance in the first semester of 2012.
Intiland booked an income of IDR 530.74 billion, in the first semester of 2012. This is an increase of 5.75 percent from the same period last year, in which the company had booked an income of IDR 501.88 billion. The company also has been successful in improving the company’s gross profit from IDR 207.37 billion in the first semester of 2011 to IDR 225.04 billion for the first semester of 2012, or an increase of 8.52 percent.
Archied Noto Pradono, Intiland’s capital and investment director, said that the increase in the company’s income has been due to the company’s success in marketing its new projects in the several product segments. The biggest contributors to the income came from the sales of 1Park Residences apartment units in Jakarta, Talaga Bestari housing complex in Tangerang, Graha Natura housing complex in Surabaya, and Ngoro industrial area in Mojokerto, East Java.
There is an external factor which contributed to the increase in the income, and it is the improving condition of the property market in the first quarter of this year. The market demand for property products, especially in Greater Jakarta and Surabaya, has been increasing, notably that for landed houses, apartments, offices or industrial zones.
The contribution from development income was still the biggest, reaching IDR 463.65 billion or 87 percent from the total income booked by Intiland. Recurring income from office lease, sports facilities and hotels contributed IDR 67.05 billion, or around 13 percent.
“From the product segments, house development contributed the biggest, reaching 47 percent. This was followed by contributions from mixed-use & high rise segment with 39 percent, industrial zones with 9 percent, hotels with 2 percent and others with 3 percent. Looking at the company’s performance in the first quarter of 2012, we are optimistic we can achieve this year’s performance target with the launch of several new projects within the next six months,” Archied added.
In the first semester of 2012, the company recorded operating profit of IDR 142.25 billion, an increase of 2.17 percent from the same period in 2011 in which the company booked operating income of IDR 139.23 billion. Intiland recorded net income of IDR 90.77 billion, whereas in the first six months of last year, the company booked IDR 108.44 billion. This is because last year, the company still made significant sales from Ngoro II project, which also contributed significantly to the profit.
Archied explained that the company still has not booked the sales result of several new projects from the first semester of this year as the projects are still in the construction stage. The projects are Aeropolis Residence apartment project, Serenia Hills housing complex and Graha Natura housing complex.
Archied added that the management of Intiland this has projected that this year the company will be able to book an income of IDR 1.2 trillion. The management estimates that the company will book marketing-sales value between IDR 1.5 trillion and IDR 1.6 trillion this year.
This optimism is based on the fact that the national property market will continue to grow significantly in the next few years. The macro-economic condition which shows positive growth and the growing market demand for property products are positive indicators of the prospect of the property sector.
“We are confident that the national property market, especially that in big cities such as Jakarta and Surabaya, will grow significantly. The demand for facilities for housing, office and also lifestyle is rapidly growing, and this makes us feel optimistic that we can continue to expand with our latest property products to cater various segments,” he said further.
The Development of Ongoing Projects
To anticipate the growing trend in the national property sector, the company has taken several expansion strategies to improve the company’s work performance in the future. One of Intiland’s key strategy to the development is launching new massive property projects.
In mixed-use & high rise segment, Intiland will soon launch 1Park Avenue project in Kebayoran Baru, South Jakarta. Located in an area of 2.4 hectares, the project comprises three apartment towers, one serviced apartment tower and an exclusive landed house cluster.
The development of 1Park Avenue is the continuation of the project, 1Park Residences, which the company successfully marketed. The project is to be launched in Q3/2012.
The company also recorded a success in developing Aeropolis megaproject. The project is located not far from Soekarno-Hatta International Airport, Tangerang. After selling all units of Aeropolis Residence apartment and Aeropolis Commercial Park phase I, Intiland is to launch Aeropolis Residence phase II in September 2012.
“Following the success of Aeropolis Residence apartment and Aeropolis Commercial Park office facilities, we will soon start with the next step: The phase II of the apartment and commercial projects which comprise offices, retails and a hotel. Aeropolis will be one of Intiland’s big-scale main projects, which will contribute significantly to Intiland’s business development in the future,” Archied said.
Still in the mixed-use & high rise segment, the development of Graha Festival megaproject in Graha Famili, West Surabaya Barat is following the right track. Graha Festival comprises several apartment towers, office buildings, international hospital, shopping center, sport and family recreation center and restaurants. In September, the company will sign a strategic partnership in the operation of National Hospital, an international-level hospital. The development of the hospital is entering the final phase and at present the hospital is running a trial run for its technological aspect, human resources and its system. For office buildings, the company has finished with the development of Spazio.
In the middle of this year, Intiland will start the initial stage of the construction of South Quarter, in South Jakarta. The project, which comprises offices, retails and apartment, will start with the construction of the foundation this year, and it is estimated to be completed by the end of 2014.
Archied explained that Intiland will experience a substantial growth. The company is entering rapid growth stage with its new projects in four main segments: housing, mixed-use & high rise, industrial area and hospitality.
Mixed-use & high rise development projects will be one of segments, which Intiland will focus on in the near future. The company has prepared several new development projects this year. One of them is the one located on Jl. Panglima Sudirman at Surabaya’s main business hub. “The project is entering its final preparation stage. We plan to introduce the project within this year. The project is an integrated mixed-use development, consisting of apartment, hotel, retail and offices,” Archied said.
Aside from those projects, Intiland continues with the development of industrial zone in Ngoro Mojokerto and Intiwhiz’s Whiz Hotel chain. Both segments are two of the four core businesses which will contribute to he company’s growth. ***