Ciputra Development to expand business into apartments

Ciputra Development to expand business into apartments

JAKARTA (JP): PT Ciputra Development, a real estate developer
listed on the Jakarta and Surabaya stock exchanges, will
construct apartments, a housing complex and hotels this year with
funds retained from its earnings.

The company's marketing director, Harun Hajadi, told reporters
after an annual meeting of its shareholders here yesterday that
the company will begin the construction of Citraland Regency
Apartments on a 13.5-hectare area within the so-called Golden
Triangle of Sudirman, Gatot Subroto and Rasuna Said streets in
Jakarta before year's end.

Harun said the company will also develop Citra Grand City, a
housing complex, on a 1,000-hectare area in the West Jakarta;
Citraland Hotel in Semarang, Central Java; and the second phase
of the 1,000-hectare Citraland City, a housing complex in
Surabaya, East Java.

He said the projects will be financed partly with the
company's retained profits.

The company's retained earnings rose to Rp 30.04 billion
(US$13.91 million) last year from Rp 27.35 billion in 1992, while
its after-tax profit dropped to Rp 2.68 billion (Rp 16 per share)
from Rp 8.72 billion (Rp 58 per share).

Harun explained that last year's lower profits were caused by
an adjustment of the company's accounting system to a new
standard, which has caused it to shift part of its sale revenues
in 1993 to its 1994 financial report.

He said the accounting adjustment will likely cause a 420
percent increase in the company's revenues to Rp 482.5 billion
($223.38 million) this year.

Ciputra Development has thus far developed Citra Garden, a
housing complex in West Jakarta; Citraland Mall and Hotel, also
in West Jakarta; Citraland Mall in Semarang and Citraland City in
Surabaya.(02)