Bumi Serpong Damai Sets Aside Rp 4t Capex for 2017
Jakarta. Property developer Bumi Serpong Damai has set aside a maximum of Rp 4 trillion ($299 million) in capital expenditure this year – the same as in 2016 – for land acquisition and the building of offices and a shopping mall.
The developer, controlled by conglomerate Sinarmas Group, will use at least Rp 1 trillion of its capital expenditure for land acquisition, BSD director Hermawan Wijaya told reporters on Tuesday (21/02).
The remainder will be allocated to the construction of AEON Mall at Southgate Residences, a mixed-use development in Jagakarsa, South Jakarta, and for an office building. However, he did not disclose the location of the land that will be acquired, nor where the office building will be situated.
"We are going to use internal cash to fund our capex," Hermawan said.
He added that should the internal cash be insufficient, the company would either obtain bank loans of around Rp 2 trillion, or bonds, which can be issued at any time as the developer has approval from the Financial Services Authority (OJK) for more than Rp 3 trillion by 2018.
The company has raised Rp 650 billion from bonds last year.
BSD also targets Rp 7.23 trillion from marketing sales – sales of unfinished property – this year, which is 16 percent less than last year.
"We are positive that this year is going to be better for the property business as we saw that demand for property units has been increasing since the last quarter of 2016," Hermawan said.
To boost its marketing sales, the company will focus on the development of a commercial property among the three projects it will launch this year.
These include the two-tower premium apartment complex dubbed Element, located in the Epicentrum superblock in Kuningan, South Jakarta.
The other projects are Klaska Residence in Surabaya, East Java, and Southgate Residences in Jakarta.
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