THE COMPANY: Agung Podomoro Land develops, manages and rents integrated properties, which include apartments, houses, hotels, offices, stores, shopping centres and entertainment centres, supported by its facilities through the company and its subsidiaries. The company carries a bond issuance worth approximately Rp1.2trn ($144m). This bond is divided at Rp325bn ($39m) and Rp875bn ($105m), respectively. All of the proceeds will be used for Agung Podomoro’s business expansion through the acquisition of property companies located in Jakarta, Bali and possibly Bogor. Agung Podomoro is looking to acquire property companies that are selling or managing apartments, hotels, offices, shopping centres, stores, entertainment centres and/or landed houses. The company is in the process of negotiating with companies that meet this requirement.
DEVELOPMENT STRATEGY: Agung Podomoro plans to develop residential and commercial properties found in inner-city districts of populous areas. In West Jakarta, the company is currently developing Podomoro City, which will consist of the Central Park superblock, the Garden Shopping Arcade, the Royal Mediterania Garden and the Mediterania Garden Residence 2. Once completed, Podomoro City will be more than 210,000 sq m. The Central Park superblock consists of office space, housed at the Central Park Office; the Central Park Hotel; and residential property called Central Park Apartments. The area will also be supported by Central Park Mall, which will be a lifestyle centre. There will also be green areas and outdoor entertainment, known as Tribeca Park, which will be connected to the mall, and apartments, offices, hotels, restaurants and cafes. Construction of the mall has already been completed, while the hotel and office is expected to be finished in 2011. The apartments will be completed in 2012.
HEADING SOUTH: In South Jakarta, Agung Podomoro is developing Kuningan City, which has a mall, offices and apartments. Agung Podomoro will launch Kuningan City Mall in November 2011. The mall has already reached more than 50% occupancy of committed tenants. Agung Podomoro’s launch of its Kuningan City apartments was largely successful, with 90% of units already sold out, although construction is not expected to be complete until 2012. The company expects the offices in Kuningan City to be completed in 2012.
The location of both projects, Central Park and Kuningan City, are strategic, particularly in business areas. Prices at the moment are profitable but are expected to rise still further in the coming years.
Agung Podomoro is also developing Green Bay Pluit, located in Pluit Penjaringan, North Jakarta. The superblock consists of Green Bay Pluit mall, apartments, condominiums and shops. The area will also be home to a school. The company expects the project to be completely developed by 2014. The development will be divided into two stages. The first stage will consist of the development of shops and residences. Agung Podomoro has already sold 3706 units of the 6734 apartments that will be available upon completion, which is due to happen in 2012. Each unit has an average area of 33 sq metres. The second stage will see the completion of the mall, school and further residences.
Agung Podomoro will develop four condominium towers, with each tower housing 502 units. The condominiums are expected to be completed by 2013.
In the main business district area of Jakarta, Agung Podomoro manages Senayan City Mall, as well as apartments. The area is targeting the middle and upper market segments. Although the location of Senayan City mall is close to other malls with the same market segment, the occupancy rate is almost 100%.
The company focuses on developing properties in strategic areas, mainly in attractive business districts.
In almost all of the areas that Agung Podomoro manages, it focuses on several types of property, rather than just one. Most areas have residential property, office space and malls. To use the land optimally, most of the projects are high-rise buildings. In 2011 it is estimated the company will book sales and revenue of Rp3.2trn ($373m), with net profit of Rp525bn ($61.2m).
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