Jakarta (26/06) – Property Developer PT Intiland Development Tbk (Intiland) keeps endeavoring to strengthen the company’s performance by means of several growth strategies. One of the strategies that have become the priority is the development of new large-scale projects, which have become the engine to drive the future business growth.
Director of Investment and Capital Management at Intiland, Archied Notopradono revealed the company was optimistic that the corporate future growth would be very substantial. His confidence is based on the number of new projects developed this year and for years to come.
“This year is the beginning of Intiland’s growth era. We have launched many new projects that can give significant contributions for the future corporate growth, be it in the development segments of residential, mixed-use, industrial or hotel,” Archied said.
The direction of Intiland’s future growth strategies, according to him will be much supported by the outcomes of the development of large-scale projects. The company currently has commenced at least seven new development projects in the Greater Jakarta and Surabaya.
In the residential segment, Intiland has launched two new projects which are Serenia Hills exclusive housing in South Jakarta and Graha Natura in Surabaya. Having been marketed since end lf last year, as much as 60 percent of the total housing units in Serenia Hills have been sold. The project is developed into two phases, with the total selling target worth Rp 1.2 trillion.
Mixed-use development will be one of the business growth pillars considering the number of projects constructed. Those projects, among others, are Aeropolis, an integrated zone close to Soekarno-Hatta airport, Tangerang, an integrated business district South Quarter on TB Simatupang Rd and the second phase of Gandaria in South Jakarta.
In the Aeropolis project, the company has successfully marketed all the 1,194 apartment units of Aeropolis Residence within the time frame of four months. The company has also marketed the strata-title office units of the first phase of Aeropolis Commercial Park since mid of May 2012.
“Public response to the Aeropolis project is very good. They see very good potential and prospect of the Aeropolis development as the business district that complements the rapid development of Soekarna-Hatta airport. Our development’s construction phase has been commenced since last month,” Archied said.
South Quarter and the second phase of Gandaria projects are the newest development to be started this year. Located on the corridor of TB Simatupang, South Jakarta, South Quarter is designed to be the integrated business district that covers office complex, apartment and supporting retail facilities. Meanwhile, the second phase of Gandaria project is a housing development that becomes the continuation of the company’s success in marketing 1Park Residences.
Archied revealed that the Intiland’s management strategy at the moment is focused on efforts to increase performance from projects being developed. The efforts are realized through executing development phase and construction, as well as increasing marketing performance from new projects.
The significant development in the hospitality segment is through Whiz Hotel network development. After established its presence in Yogyakarta, Semarang and Kuta, Bali, the company is setting the pace to build the Whiz hotels in at least 23 development locations, which will be developed by the company alone or by strategic partnership with investors.
Those locations include sites already in the construction development phase and others that are still in the licensing process. Intiland’s management is committed to making Whiz Hotel as one of the company’s core businesses capable of producing recurring income in the future.
To develop industrial zone, the company’s focus is doing the land extension in Ngoro Industrial Park (NIP) II. Along the year, a number of global companies have put their investment by building manufactures in IP II with the needs of average 10 to 20 hectares of land.
In line with the development of many new projects, Intiland has allocated capital expenditure of around Rp 1.5 trillion this year. The financial source for the capital expenditure comes from the combination of pre-sales, business operation and bank loans.
Most of the capital expenditure fund allocation flows for funding the development of new projects. The biggest allocation flows for the projects of South Quarter, the second phase of Gandaria, Whiz Hotel, Serenia Hills housing estate and Graha Natura. Other new projects also follow.
Archied admitted that the development of new projects has yet given the impact to the financial performance this year. This is due to the fact that most of the projects are still in the beginning construction phase. The outcome can be seen in years to come.
Archied said that Intiland’s future business growth would be supported from the combination of development and recurring income. For development income, the company relies on its contribution of residential projects from landed houses and high-rise residences, such as in the projects of Serenia Hills, Graha Natura, Talaga Bestari and Gandaria II. AS for the sustainable income, the company relies on Whiz Hotel network and office buildings such as in South Quarter.
“We are targeting marketing sales this year to achieve Rp1.5 to Rp 1.6 trillion. As for the income and net profit, we estimate the figure to be increased by around 25 percent,” he added.
With this projected achievement, Intiland’s management is optimistic that the company has set its right direction and pace of the corporate growth. After successfully went through the transformation and put the solid foundation with the improvement in financial condition and increase in reserve land, it’s the time that the company aggressively execute new development projects.
Distributing Dividends
In line with the improved financial performance and business operation, the company is intent to distribute some of the net profit of the fiscal year 2011 in the form of dividend. The plan has gotten the approval from shareholders during the General Meeting of Shareholders held on Tuesday, June 26, 2012.
“Shareholders agree the corporate plan to distribute around Rp 31.09 billion or 22.2 percent of the company’s net profit booked in the year 2011,” Archied said.
This dividend distribution is the first the company holds since the last decade. Previously, in the year 2000, the company distributed dividends of the company’s financial performance booked in the year 1999 amounting to Rp 0.20 per share.
Archied stated that the management is committed to always endeavoring to increase the value of shareholders. The decision to distribute dividends is a consideration that the current Intiland’s development is in line with the company’s growth path. In addition, the business performance and prospect are improved with positive retained earnings.
Intiland’s management is convinced that in line with the development and launch of new projects, the company’s business fundamental is getting stronger. Those projects will become the main engine that drive the company’s growth and give big contribution to the improved performance, while creating sustainable growth pattern.***