Summarecon to build 30,000 homes in Bekasi

The Jakarta Post, Sat, 04/26/2008 12:02

Publicly listed construction firm PT Summarecon Agung is set to expand its property business by building 30,000 houses for middle and upper-income families in West Bekasi.

President director Johannes Mardjuki said after a shareholder meeting Friday the company was optimistic the houses would sell out as the company already had experience in property projects in Jakarta and Tangerang.

The houses will be built at an investment of some Rp 275 billion (US$29.8 million), he added.

Johannes also said the company was in the process of building a 300-room hotel near Kelapa Gading Mall in North Jakarta, which was expected to start operating in the middle of 2009.

The company is also planning to construct eight levels of Plaza Summarecon Serpong office building in Serpong, Tangerang, for operation in 2008.

"The company has allocated Rp 100 billion from internal cash for the hotel's development and Rp 45 billion for the office in Serpong," he said.

Following higher demand for houses, apartments and shop-houses in Kelapa Gading and Serpong, the company recorded sales of Rp 1.03 trillion last year, up by 6 percent from Rp 965.25 billion in 2006.

Sales in the two areas accounted for 66 percent of the company's total sales last year.

"Demand for houses has increased following stronger public purchasing power and favorable interest rates," said Johannes. (JP/rff)