Welcome Guest   |  Login   |   Signup
JG Logo
Fri, February 10, 2012
Archive Search

Ciputra Development Raises Stake in Own Unit
Yohanes Obor | February 17, 2010

Share This Page
0
0
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

PT Ciputra Development, one of Indonesia’s largest property builders, announced that it had raised its stake in subsidiary PT Ciputra Surya to support future profit growth.

Director Tulus Santoso said on Tuesday that the company had increased its stake in the unit from 39.9 percent to 62.7 percent by buying shares at a total cost of Rp 371 billion ($40 million) over the past four months. Both companies are listed on the Indonesia Stock Exchange (IDX).

Tulus said Ciputra Development had paid Rp 825 per share, with the biggest seller Singapore-based Castleridge Enterprises, which sold its 22 percent interest.

“We would also like to increase stakes in other subsidiaries if they have very good business prospects because this could help boost the company’s future earnings,” Tulus said.

Ciputra Surya accounts for about 30 percent of Ciputra Development’s total revenue. PT Ciputra Property contributes 40 percent, while the remainder comes from housing projects directly under Ciputra Development’s control, such as Citra Grand, Citra Indah, Citra Raya and Citra Garden.

Isfhan Helmy, an analyst at PT eTrading Securities, said the move raised the parent’s prospects because Ciputra Surya had large land holdings and large commercial projects.

“We believe Ciputra Development has strong growth opportunities supported by its huge land banks, smart acquisition in high-growth urban areas and its expertise in township development,” he said.

Ciputra Development holds 499.3 hectares of developed land and 1,199.7 hectares of undeveloped land in Jakarta, Surabaya and Kalimantan, with a total value of Rp 2.69 trillion, Isfhan said.

The Ciputra World Jakarta and Ciputra World Surabaya commercial-residential projects would become cash machines when they were completed in 2011 and 2012, he said.

“We are very positive that the Ciputra World projects will account for 57 percent of Ciputra Development’s revenue in 2013,” Isfhan said, adding that he expected revenue to reach Rp 2.6 trillion in 2013.

Ciputra Development stock rose Rp 10 to Rp 680 on Tuesday, but closed flat on Wednesday.