Jakarta (12/04) – Integrated property developer PT Intiland Development Tbk (Intiland) recorded its positive growth in the industrial estate development segment.
Amidst the unfavorable market condition, the company’s Ngoro Industrial Park (NIP) has successfully marketed its industrial land to several strategic investors.
The latest development sees the company has successfully marketed around 20.3 hectares of NIP’s industrial land to PT Toyota Astra Motor (TAM), a subsidiary of PT Astra International Tbk engaged in the car distribution. Intiland, through its subsidiary, PT Intiland Sejahtera, and TAM signed a purchase agreement on April 12, 2017 in Surabaya.
Intiland’s Director of Capital and Investment Management, Archied Noto Pradono explained that the sales of the industrial land gives a positive signal to the industrial estate’s future prospects. This deal is a proof that NIP is still a choice and favorite industrial estate for big national and multinational companies.
“This investment signifies that the industrial estate sector indicates its improved trend. We are certainly welcoming the confidence of investors seeking to invest in Ngoro Industrial Park,” Archied said.
Archied revealed the transaction value of NIP’s industrial land sales to TAM reached Rp386 billion. The plan is the land to be used to develop integrated facilities for vehicle distribution and spare parts center.
Currently, this industrial estate is one of Intiland’s four property development segments. This segment provides a strategic value for the company as a property development, owing to the segment’s significant contribution to the business development.
The company is optimistic that along the investment climate recovery and national economic improvement, the needs to the industrial land in Indonesia will continuously increase. The company has anticipated this condition by means of preparing the industrial land development in NIP and other regions in East Java.
Since the beginning of 2017, the company has successfully marketed 23-hectare of NIP’s industrial land. Besides TAM, the company in the first quarter of this year also marketed 2.7-hectare industrial land amounting Rp50 billion to domestic company engaged in household furniture.
Archied revealed that in line with the high demand and the need for industrial land, Intiland is continuously developing its NIP estate. To meet and anticipate the trend, the company is preparing around 125 hectares of additional development area. As for the future, the company will focus more on sales of warehousing, customized to the needs of different investors.
“Until April this year, the marketing sales for the industrial estate has reached around Rp436 billion. This achievement exceeds the target set at the beginning of the year, with the sales of 10-hectare land valued at Rp185 billion,” he further said.
NIP is a 500-hectare integrated industrial estate in Ngoro, Mojokerto. Its location is very strategic with quick accesses to Surabaya’s Tanjung Perak Port and Juanda Airport. This industrial estate has been designated as one of the national’s vital object in industrial sector competed with integrated waste management facility and natural gas pipeline.
In line with its development, NIP not only has marketed its industrial land, but also is equipped with standard factory buildings and warehousing area for rent. These facilities are rented by suppliers or distributors from plastic, cable and paper industries.
The development of standard factory buildings is designed not only as a supporting facility for the industrial needs, but also to increase the company’s recurring income. In 2016, the recurring income from standard factory buildings and management of Ngoro area reached Rp49 billion, or around 14 percent from the total of Intiland’s recurring income.
Intiland believes that the investment climate in the property sector in general is gradually recovering. The confidence of foreign investors in the investment climate in Indonesia, including in the property sector, is also starting to move in the positive direction.
Strategic Partnership
At the end of last year, the company started its joint venture partnership with GIC, a Singapore’s foreign investment funds institution, with the 60-40 percent composition for ownership and management of South Quarter integrated office zone. With this partnership, the company and GIC are planning to develop the second phase of South Quarter by launching two condominium towers in the fourth quarter of this year.
The company is welcoming opportunities for strategic partnership with parties that share similar vision of philosophy and target growth. Joint venture is one of Intiland’s growth strategies that have strategic values in synergizing strength and experience to develop world-class properties.***