Ciputra builds Rp 3 trillion superblock

The Jakarta Post, Jakarta | Wed, 12/15/2010

Publicly listed property firm Ciputra Property is building a Rp 3 trillion (US$333 million) superblock on 5.5 hectares of land on Jl. Prof. Dr. Satrio, Jakarta, using the concept of Singapore’s Orchard Road business district.

The company’s executive director and corporate secretary Artadinata Djangkar said in Jakarta on Tuesday that Ciputra wanted to be the pioneer to build an integrated retail and entertainment hub similar to Singapore’s famous business district of Orchard Road in Jakarta.

“We want to be the pioneer of Orchard Road’s development in Jakarta. We believe that Jl. Prof. Dr. Satrio is among the favorite roads in the city,” he told a press briefing at Ciputra World Jakarta Marketing Gallery.

The development of Jakarta’s Orchard Road started with the Capital World Jakarta project, which is equal to the size of 55 football fields.

“Capital World Jakarta will consist of a mall, entertainment and theme park, auditorium, apartments, hotel and condominiums. Up to the end of 2010, the development of the project has reached 31 percent of the overall project area,” Artadinata said.

The 14-story mall, entertainment and theme park, as well as an auditorium with a capacity of 1,200 people are expected to be open to the public in mid-2012.

In addition, 170 apartments managed by Singapore’s Ascott Group, 136 myHome condominiums, a 170-room Raffles Hotel and 88 luxurious Raffles Residences apartments will also be housed on the super block.

The super block in the busy center of the city is expected to add more traffic in the heart of the capital, but Artadinata said the government was working on an overpass that would resolve traffic issues around the Jl. Prof. Dr. Satrio area.

“From about two weeks ago, the government started its overpass project from Kampung Melayu to Tanah Abang that will reduce traffic and facilitate people coming to the center of Jakarta,” he added.

Artadinata said Ciputra would focus on the development of the Rp 3 trillion-worth Capital World Jakarta as well as another 240,000-square-meter project on Jl. Prof. Dr. Satrio, known as the Kav. 11 project, next year

“Our capital expenditure for next year will be Rp 1 trillion, mostly for Ciputra World Jakarta and the remaining for the Kav. 11 project,” he said.

Listed on the Indonesia Stock Exchange (IDX) since 2007, Ciputra currently has a total of 10 hectares of land throughout the archipelago, including Mal Ciputra and Hotel Ciputra in Jakarta and Semarang, as well as myHome apartments at Ciputra World Jakarta.

On the same day, the property giant also announced a target of 130 percent jump in net profit for the full year of 2010 to Rp 171 billion from Rp 74 billion in 2009. Artadinata expected the growth momentum to continue until next year, as the property sector is expected to boom mainly thanks to hefty economic growth in Southeast Asia’s biggest economy.

“As we all know, Indonesia’s economy is among the most attractive investment destinations this year, so the economy is expanding, affecting the property market,” he added, eyeing Rp 3.9 trillion in assets by the end of the year.

Ciputra’s shares (CTRP) soared following the outlook announcement, trading at Rp 440 apiece at 3 p.m. on the Indonesia Stock Exchange (IDX), a 1.15 percent increase. Ciputra has a total market capitalization of Rp 2.7 trillion. (est)