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Ciputra Property to Build $360m Kuningan Site
Francezka Nangoy | January 12, 2012

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Ciputra Property, a unit of the Ciputra Group, will invest Rp 3.3 trillion ($360 million) in its latest mixed-use development as it aims to capture more of Indonesia’s growing middle-income market.

On 3.1 hectares in Jakarta, the company will build two apartment towers, one office tower and a hotel building to be managed by W Hotel. The complex, Ciputra World Jakarta 2, will stand near the 5.5-hectare superblock Ciputra World Jakarta in Kuningan.

The first stage of construction will start with two apartment towers that are scheduled to be completed by the end of 2014.

Artadinata Djangkar, a director and corporate secretary of Ciputra Property, said the first stage of construction will require Rp 1.1 trillion.

“Unlike the first Ciputra World, which required big external financing, Ciputra World 2 will be financed by our own cash flow,” Artadinata said, adding that the company had set aside Rp 350 billion from its cash and that the rest would come from units that have been presold.

Last year, the company signed an agreement with Bank Mandiri for a Rp 1.83 trillion loan to help finance the first Ciputra World.

Artadinata said that of the 468 new apartments to be built for Ciputra World 2, about 55 percent have already been sold, generating Rp 350 billion.

“If needed, we will take up a bank loan,” he added.

He said the nation’s property market is still very promising.

“Demand in property is excellent with good interest rates and a growing economy despite the global weakening in economy,” he said. “I see indications that the interest rate will not be raised this year.”

Helen Hamzah, who handles marketing and sales for commercial buildings at Ciputra Property, said that in the company’s latest condominium endeavor, Ciputra is targeting young executives and young married couples who enjoy apartment-living and a walk-to-work lifestyle.

For its serviced apartment, which makes up one of the two apartment towers, Ciputra has increasingly targeted expatriates living in the capital, hoping to take advantage of the rise in multinational companies operating in Indonesia and Jakarta.