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Corporate

WIKA Realty Targeting Marketing Sales of Rp 2.3 Trillion in 2020

Jakarta, 20 January 2020 - PT Wijaya Karya Realty (WIKA Realty), a subsidiary of PT Wijaya Karya (Persero) Tbk., Held a 2020 Work Plan ratification event for all its projects, located at the WIKA Realty headquarters, Tamansari Hive Office, Cawang, Jakarta East, Monday (20/1). The event is attended by the Board of Commissioners, Directors and all Management of the Company up to the level of the PT Wijaya Karya Realty project.

 

In this momentum, President Director of PT Wijaya Karya Realty, Agung Salladin said, WIKA Realty is optimistic that the property business will continue to grow in 2020, in line with the preservation of Indonesia's economic fundamentals. Moreover, it has been quite a long time in previous years as the property business has stagnated. 

 

In 2020, WIKA Realty targets to achieve marketing sales of Rp 2.3 Trillion, or an increase of approximately 18% from the previous year's achievement of Rp 1.95 Trillion. "Last year's biggest achievement is the result of marketing sales from high rise property sales which is indeed our largest portfolio, besides landed houses and contributions from subsidiaries," said Agung Salladin. 

 

In 2020, WIKA Realty prepares capital expenditure (capex) of Rp 7.6 trillion in which the funds came from internal cash flow from sales, loans and Initial Public Offering (IPO) plans. "The capex will be used for the development of ongoing projects and for asset acquisition, especially to strengthen the recurring portfolio," said Agung Salladin.

 

To achieve the targets set, WIKA Realty will carry out various strategies. These include sales of landed house and high rise projects ready for habitation and recurring properties with stable returns. "The company will also accelerate the marketing of projects that are in the process of being built and are ready to be built," said Agung Salladin. 

 

Additionally, a strategy to intensify retail or bulk marketing for existing products is done through product re-evaluation and evaluation according to the market's taste and absorption. "To penetrate the market to market groups / communities in accordance with the segments of each region," said Agung Salladin.

 

Currently, WIKA Realty is developing 13 projects in various major cities in Indonesia, including:

1. Tamansari Cendekia, Semarang (apartment)

2. Tamansari Emerald, Surabaya (apartment)

3. Tamansari Skyhive, Jakarta (apartment) - high rise residential concept apartment which will begin to be developed in Semester 2 of 2019, where the progress has now reached foundation construction and has a total capitalization of Rp 714 Billion.

4. Tamansari Kencana, Bandung (apartment)

5. Tamansari Bintaro Mansion (apartment) - high rise residential concept apartment that has been developed in 2018, which has now reached an architectural finishing process and has a total capitalization of Rp 154 ??billion for property units owned by WIKA Realty as investments.

6. Tamansari Urban Sky, Bekasi (apartment) - a high rise apartment based on the TOD concept with a strategic multi-access location in Bekasi adjacent to the LRT station and 2 toll booths, where development began in May 2018. At present the progress has reached approximately 40% and has a total capitalization of Rp 1.5 Trillion of property units owned by WIKA Realty as investments.

7. Tamansari Urban Suites, Bekasi (apartment) - a high rise apartment based on the TOD concept with a strategic multi-access location in Bekasi adjacent to the LRT station and 2 toll booths, where development will begin this year. The progress is currently in the planning stage and has a total capitalization of Rp 765 billion for property units owned by WIKA Realty as investments.

8. Tamansari Metropolitan, Manado II & III (landed house)

9. Tamansari Grand Samarinda (landed house)

10. Tamansari Puri Bali II (landed house) - a residential landed house that began to be developed in 2017, where the current progress has reached approximately 40% with a total capitalization of Rp 139 billion.

11. Tamansari Cyber ??Bogor (landed house) - continuing development in 2015, this residential landed house is currently starting construction of its housing cluster and has a total capitalization of Rp 426 billion.

12. Tamansari Swarna, Palembang (landed house)


New Project

In 2020 WIKA Realty will develop 8 new projects spread across Jakarta, Bandung, Tangerang, Karawang, and Klaten, which include the concept of Transit Oriented Development (TOD) and Township Development:
 
1. Laswi City, Bandung (retail area)
2. Tamansari Savega, Jakarta (apartment) - high rise residential concept apartment whose development will begin in Semester 1 of 2020, where the progress is currently in the licensing process and has a total capital investment Rp. 774 Billion.

3. Skybox, Tangerang (apartment) - high rise residential concept with 7 tower apartment. Currently the progress is in the permit stage and has a total capitalization of Rp 936 Billion.

4. TOD Karawang (township development)

5. Tamansari Equine, Jakarta (apartment) - a high rise residential concept with a mixed-use residential concept whose development will begin in 2020, where the progress is currently in the licensing process and has a total capitalization of Rp 2.6 trillion.

6. Integrated Building Soekarno-Hatta Airport (retail area)

7. Hotels in Klaten City Center (hotel / recurring)

8. Pulo Gadung, East Jakarta (landed house)

 

The projects mentioned above are part of the total 29 projects under the development of WIKA Realty in 15 cities in 10 provinces of Indonesia, including Jakarta, Bekasi, Depok, Bogor, Bandung, Tangerang, Palembang, Semarang, Surabaya, Bali, Balikpapan, Samarinda, Makassar, Manado and Kendari.

 

Initial Public Offering (IPO)

WIKA Realty is currently preparing to carry out an Initial Public Offering (IPO) in 2020 and is expected to be realized in Semester 1 this year. WIKA Realty is quite optimistic that this IPO will be welcomed by investors, seeing that WIKA Realty is a company that has been engaged in the property industry for a long time with 20 years of experience.

"WIKA Realty has a portfolio that is spread in various major cities in strategic and diverse locations, which include landed house properties, high rise strata titles, office buildings, commercial retail, club house properties, hotels, food courts, as well as service building management or asset management. This condition will guarantee the company's sustainability," said Agung Salladin.