Agung Podomoro Land Raises Capital Spending by Half for Big Projects
BY :FARID FIRDAUS
JANUARY 12, 2015
Jakarta. Agung Podomoro Land, one of Indonesia's biggest property developers, is raising capital spending this year by 50 percent to Rp 7.5 trillion ($591 million), to help finance large projects.
Much of the spending will be allocated toward two of the company’s big projects, which include land reclamation for Pluit City — a 160-hectare township in North Jakarta — and a 5.2-hectare superblock in Medan, South Sumatra, said Indra Wijaya, the vice president director of Agung Podomoro Land, on Sunday.
Both of the projects are expected to take as much as Rp 3 trillion of the company’s capital expenditure this year.
In addition, Agung Podomoro is continuing the development of SOHO Podomoro City, a mixed-use site inside its township in West Jakarta.
“With all of these projects, we hope to book up to Rp 8 trillion in marketing sales this year from Rp 6 trillion last year,” Indra said.
Agung Podomoro Land finance director Cesar M. Dela Cruz noted that the company is seeking between Rp 2.5 trillion and Rp 3.5 trillion in bank loans to finance this year’s spending.
“The rest will be covered by marketing sales and what remains from our bond sale last year,” Dela Cruz said.
The listed property developer, which trades under the APLN symbol on the Indonesia Stock Exchange, raised a total of Rp 1.2 trillion from the sale of bonds in 2014.