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)