Publicly listed property company PT Ciputra Property plans to invest Rp 7 trillion (US$747.36 million) on an integrated shopping mall, hotel and apartment project in Jakarta.
President director Candra Ciputra said Tuesday the project would underline the reputation of the Ciputra Group as one of the country's main property companies.
"The total investment for the project is realistic as we have in our possession some Rp 2 trillion in internal cash, and assets worth Rp 8 trillion," said Candra during a groundbreaking ceremony for the project.
He said the firm would only seek Rp 230 billion in loans for the development.
The project, dubbed "Ciputra World", is expected to be completed in 2010, with the company spending some $300 million for the first phase of construction.
Located on Jl. Prof. Dr. Satrio in South Jakarta, the project is expected to be wrapped up in three phases.
According to the firm's director, Artadinata Djangkar, some Rp 400 billion will be spent this year on the development.
"Through an initial public offering back in November last year, our company raised 2.1 trillion in proceeds. Some Rp 1.6 trillion of that will be used to finance the project," he said.
As a result of the new project, the company expects to triple its revenue to some Rp 750 billion this year, up from Rp 280 billion last year and Rp 268.87 billion in 2006, he said.
"Our revenue is mainly from leasing apartment units, mall outlets and hotel chains. Our average annual growth revenue is around 6 percent. But this year we're expecting more revenue from this new project," said Artadinata.
Ciputra World, which will be built on 5.5 hectares of land, will consist of a six-floor shopping mall, 290 apartments, a 200-room hotel, with 80 luxury apartments on its top floors, as well as office space and a five-story parking lot.
"One hundred and fifty of the apartment units are for leasing, and 140 units for selling. The price tag for will be around Rp 2 billion each," said Artadinata.
Ciputra Property owns Ciputra Mall & Hotel in West Jakarta and Semarang, and Apartment Somerset Grand Citra in South Jakarta.
The company recorded a profit of Rp 41.47 billion last year, up by 21.6 percent from Rp 34.09 billion in 2006.
Around 51.05 percent of the company's shares are owned by PT Ciputra Development, 0.01 percent by PT Ciputra Graha Mitra and 48.94 percent by the public. (nkn)