Real estate company says profits to increase

Real estate company says profits to increase

JAKARTA (JP): PT Pudjiadi Prestige, a real estate developer
listed on the Jakarta Stock Exchange, is predicting a 32 percent
increase in its sales and a 10 percent rise in its net profits
this year.

"Net profits had already reached Rp 7.3 billion in the first
quarter of this year," the company said in a statement yesterday.

However, the developer said the projected growth in sales and
profits was much lower than the growth the company booked in
1994.

Last year the sales of the company, which runs a number of
apartment buildings and other residential housing facilities,
more than tripled to Rp 68.92 billion (US$31.32 million) from Rp
21.52 billion in the previous year, while its net profits nearly
quadrupled to Rp 20.65 billion from Rp 5.75 billion.

In 1994 the company developed the Kelapa Gading Tower
Condominium and Marbella Residencia in Jakarta and the Kuta
Palace Residence in Bali.

Early this year, the company purchased a 55 percent stake in
PT Juwara Warga Hotel Corporation, a hotel chain which manages
three hotels, respectively located in Bali, Yogyakarta and
Lombok.

However, PT Pudjiadi Prestige's affiliated public company, PT
Pudjiadi & Sons Estates, suffered a 10.19 percent drop in its net
profits last year to Rp 3.26 billion in 1994, down from Rp 3.63
billion in 1993.

PT Pudjadi & Sons Estates's operating revenues rose slightly
to Rp 29.73 billion last year from Rp 29.34 billion in the
previous year.

The company, which manages a number of hotels, attributed the
drop in the profits to the sharp increase in its operating costs,
saying that it had put a lot of money into the improvement of its
hotel services.

It said that the improvement in the quality of services and
the opening of the Jayakarta Suites Hotel in Bandung early this
year were expected to make a significant contribution to its
earnings in 1995.(hen)