Category : Business, Corporate News
Jakarta. Alam Sutera Realty, a property developer controlled by the Argo Manunggal Group, is currently negotiating with domestic investors to sell 4.5 hectares of land in Serpong, Banten, worth a total of Rp 1.1 trillion ($84 million), the company said in a statement on Tuesday (09/08).
The property developer expects to wrap up the sale in the near future as part of the company's effort to meet its Rp 5 trillion marketing sales target for this year. The company booked only Rp 966 billion in sales in the first half of this year.
Alam Sutra Realty corporate finance and investor relations head Vincent Sjahbana said last week the company expects the income from selling the land and sales from its recently launched residential clusters in Alam Sutera and Pasar Kemis in Tangerang will help the company meet this year's marketing sales target.
Marketing sales refer to sales of property units or land before the completion of the project.
The developer recently partnered with China Fortune Land Development, a publicly traded Chinese real estate developer, to build the Pasar Kemis residential clusters.
Alam Sutera secured a Rp 1.45 trillion security deposit from China Fortune to help fund the development. Alam Sutera and the Chinese developer signed a memorandum of understanding on the project on Dec. 28 last year.
China Fortune Land will help develop the project in Pasar Kemis with roles in investment, development and management — including planning, construction and infrastructure.
Alam Sutera will provide the land and help out China Fortune in construction and management.
Tax amnesty helps property sales
Alam Sutera's president director, Joseph Sanusi Tjong, said recently there has been a strong sign that investors are now "ready to invest" again in Indonesia's property sector after tending to hold on buying property units thanks to a slow economy and weaker consumer demand.
Joseph said the tax amnesty program will start showing a positive note next year as the influx of repatriated fund is more than likely to boost the country's property market.
Alam Sutera was also previously reported to show an interest in investing in toll roads to improve transportation to its real estates in Tangerang.
The developer is targeting a 32-kilometer toll road connecting Semanan in West Jakarta and Balaraja in Tangerang, Banten. The development is estimated to be worth more than Rp 11 trillion.
Both Vincent and Joseph declined to reveal further details for the plan.
Writing by Sarah Yuniarni