Ciputra looks to get back in black

Ciputra looks to get back in black

The Jakarta Post, Jakarta

Developer PT Ciputra Development will build a shopping center in
Jakarta and develop two housing estates outside of the capital as
it seeks to return to profitability this year.

Corporate secretary Tulus Santoso said on Tuesday the publicly
listed company would soon begin constructing a mall in South
Jakarta.

"We will begin construction on the mall this year, at a total
cost of Rp 900 billion," said Tulus after a shareholders
meeting.

The project comes as the company is developing a 60-hectare
housing complex in Lampung, called Citra Garden Lampung, which is
designed as a first-class housing estate.

It is the first project the company has undertaken outside of
Java, according to Ciputra Development CEO Candra Ciputra. "We
have begun expanding our business into areas outside of Java to
tap the promising investment opportunities."

The complex will cost about Rp 100 billion to develop, Tulung
said.

The company is also developing the Citra Garden Cengkareng
housing complex on a 20-hectare site in Tangerang, Banten, at a
cost of Rp 200 billion.

"We will begin marketing (the development) later this month."

The company is betting on these projects to help jack up its
operational revenue. At present, housing estates account for
about 60 percent to its total revenue, while shopping centers,
hotels, restaurants and other recreational facilities make up the
other 40 percent.

Looking ahead, the company, one of the country's leading
developers, is targeting full-year revenue to rise by 26.8
percent to Rp 936.3 billion from last year's Rp 738.6 billion.

In 2003, revenue stood at Rp 591.3 billion.

Under its 2005 revenue projection, net profit would reach Rp
548.8 billion, a huge improvement from last year's net loss of Rp
219.3 billion.

In 2003, the company earned Rp 108.2 billion in net profit.

Aside from increased revenue, a deal reached earlier this
month could help the company return to the black. Under the deal,
Ciputra's creditors stipulated that the company's principal
borrowing of US$181.3 million would be converted into shares,
freeing Ciputra from paying debt interest, penalties and other
arrears.

"This agreement will strengthen the company's financial
structure and boost its ability to rake in profits," Tulus said.
(001)