Property firm PT Ciputra Development Tbk has absorbed IDR200 billion from its IDR800 billion capital expenditure (Capex) for its hospital expansion and warehouse development in CitraLand Surabaya.
Founded in 1984, Ciputra Group is a giant property company that focuses on large-scale residential and commercial development. The company currently has 78 residential properties, five malls, nine hotels, eight office properties, six superblocks and five healthcare properties in Indonesia’s major cities.
Focus on healthcare and e-commerce
Ciputra President Director Candra Ciputra revealed that most of the IDR200 billion, or 81%, has been used to purchase land, while the rest is used for mall construction development and hospital development.
“We will be more aggressive in hospital segment. But we will also look for warehouses, capturing e-commerce developments in that direction,” Ciputra said during the public expose on July 27, 2022.
The company aims to finish the hospital development in CitraLand Surabaya – the second largest city in Indonesia – in two years.
As for the rising trend of e-commerce, the company plans to sell warehouses, rather than lease them. “We don’t have a warehousing project yet, but it will be for sale, not for rent,” he added.
Another project at Sentul, Bogor regency – which is part of the Greater Jakarta (Jabodetabek) area – is currently underway although it is still in early stage and still needs more detailed planning and development.
High chance of target revision
Facing the possibility of future interest rate hikes and economic uncertainty, the company plans to revise its pre-sale target although there has been no specified amount yet.
“For the revision of the target, we see that there is the potential. We are just waiting for developments, especially in the future. There will be a lot of uncertainties on the interest rate hike and costs. We will monitor this from our operational so that later we will be able to determine whether there will be a revised target and the amount,” Ciputra Director, Tulus Santoso, said.
In 2021, Ciputra recorded a net profit of IDR1.7 trillion from a total revenue of IDR9.7 trillion. The revenue came from property development segment, including sales of residential houses, shop houses, apartments and office buildings, which amounted to IDR8 trillion. Meanwhile, IDR1.7 trillion remaining revenue came from recurring income segment which includes shopping centers, hotels, office rentals and hospitals.
