Podomoro Seeks Five Property Projects in 2013
Agung Podomoro Land, one of Indonesia’s largest property developer, is seeking to acquire five new projects this year as part of its expansion plans, under which the company also intends to launch four projects that it bought last year.
Indra Wijaya, vice president director of APL, told journalists on Wednesday that the company will acquire five new projects in 2013 to add to a handful of projects it took over in 2012.
“There are two or three projects in North Jakarta that we didn’t close [acquire] last year that we will close this year and one or two deals in Karawang that we are looking to close soon,” he said, declining to reveal the value of the deals.
The costs of those acquisitions are not included in the capital expenditure budget of about Rp 4.5 trillion ($466 million) this year, according to Indra. The capex will be used to finance the development of its existing projects, like Green Bay Pluit, a mix-use property in North Jakarta, as well as four of its new projects acquired last year.
The company will build a mix-use property in Balikpapan, East Kalimantan, where the beach-front complex will consist of a mall, apartment building and hotel. “Balikpapan is home for many big multinational companies, yet eating places are limited there, and there is no entertainment center,” Indra said.
In Batam, Riau Islands, the company recently acquired a residential project where it will build 2,000 units of houses and a 140-unit apartment building.
Cesar de la Cruz, APL’s finance director, said the capex this year is bigger than last year’s, at about Rp 3 trillion. The company will finance the capex from its marketing sales — sales of property projects that have not been finished yet — as well as other operational income. “If necessary, we will look for loan or [financing] through the capital market,” he added.
In the past two years, the company sold a total of Rp 2.4 trillion in bonds, and De la Cruz added that it still has about Rp 450 billion left from the bond issuance.
The company is this year aiming for Rp 6 trillion in marketing sales. This is higher than the Rp 5.81 trillion realized last year, which surpassed the company’s Rp 5 trillion target.
Indra said that 30 percent to 40 percent of the targeted marketing sales this year will come from the new projects, as well as other projects including the Parahyangan Residence in Bandung and Podomoro City Extension in West Jakarta.
Shares in APL closed unchanged at Rp 375 in Wednesday trading in Jakarta.