Property developer Metropolitan Land, better known as Metland, will commence construction of three new residential and commercial projects across Indonesia this year.
One of the projects set to be put into motion, according to the company’s press release, is an apartment and commercial complex in West Jakarta, marketed as Metland West City.
Nanda Widya, president director of Metland, said the company plans to launch the project by the end of the year.
“We’re still exploring the market… This will be a high-end residence,” he said to
reporters after the company’s annual shareholder’s meeting in Jakarta on Monday, adding that the investment value of the project has yet to be determined.
Meanwhile, the company is still conducting feasibility studies for the Metland West City integrated area, the construction of which Anhar said would likely start by the end of the year. Metland West City will be built on 60 hectares of land, with approximately half of it to be allocated for commercial development. The developer is aiming for overall sales revenue of Rp 1.15 trillion (US$98.8 million) this year supported by the company’s plans to build more apartment units and hotels.
“Metland West City will be an upper-middle class area that will offer an apartment complex as well as a shopping mall,” Anhar said on Monday, after the company’s general shareholders meeting. He added that the construction of the West City apartment complex would be a market test, with an initial construction of 50 apartment units.
The planned commercial aspect of the complex would have a mixed-use building, housing a shopping mall, apartment units and an office building. Anhar stated that Metland would most likely collaborate with foreign investors for the commercial section of the project.
“About Rp 400 billion of the target will be obtained through our existing malls and hotels, while the remainder will most likely come from pre-sales,” Metland corporate secretary Olivia Surodjo said on Monday.
According to her, the company is aiming to sell 1500 apartment units by the end of the year. The property developer is also expecting about 10 to 15 percent sales growth.
To support this year’s plans, Metland will allocate Rp 660 billion for the company’s capital expenditure, which will be used to fund and acquire land for future and ongoing projects, and improve their existing infrastructure.
Olivia said about 40 to 50 percent of the capital expenditure funding would come from bank loans.
Among the company’s ongoing projects are the construction of the M Gold office and apartment tower in Bekasi, West Java. According to Metland president director Nanda Widya, which will begin operations this year.
The company will also complete construction of the Horison Hotel in Bekasi and an interchange on the Puri Indah toll road in West Jakarta, both operational by this year.
Metland is also planning three new projects, including the construction of a 50,000-square-meter shopping mall in Cileungsi, southeast of Jakarta within the Metland Transyogi complex, construction of which will begin in June. The mall’s construction will require an investment of Rp 215 billion and is scheduled to finish at the end of 2015.
The remaining projects include the construction of the @HOM budget hotel in Lampung and the planned Metland West City integrated residential and apartment complex in Tangerang, Banten.
Metland will invest Rp 69 billion in the @HOM budget hotel, which is scheduled to be completed by the end of the Idul Fitri holiday in July, according to Metland business development director Anhar Sudrajat.
The publicly listed company earned Rp 255.77 billion in the first quarter of 2014, most of which came from property sales. In 2013, Metland made net profits of Rp 241.21 billion, which was an 18.42 percent increase on 2012’s net profits.
Metland booked Rp 854.97 billion in revenue in 2013, a 25.97 percent increase on 2012’s revenue. The company will pay out 20 percent of its 2013 net profits, Rp 49 billion, as dividends to its shareholders. (dyl)