PT Ciputra Development Tbk (IDX: CTRA) considers to issue Real Estate Investment Trust as much as Rp8 trillion (US$571.42 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian property developer, PT Ciputra Development Tbk (IDX: CTRA) considers to issue Real Estate Investment Trust (REITs) as much as Rp8 trillion (US$571.42 million), said the management on Wednesday (6/26). The company still watch the market to run the plan.

So far, in Indonesia, there are two REITs have been issued, namely REIT XCID and REIT XCIS by PT Ciptadana Asset Management. The REITs utilized Solo Grand Mall’ asset and Hotel Padjajaran Suites’ asset.

“We are still monitoring the market so it will not be issued in this year,” said director Artadinata Djangkar in Jakarta.

While, Tulus Santoso, the independent director at the company explained, that the company has recurring income’ asset around Rp25 trillion. Based on the data there is an opportunity for Ciputra to issue REITS around Rp6 trillion.

Ciputra’ need funds to finance its business expansion across the archipelago. In this year, the company prepared capital expenditure Rp1.2 trillion to support construction and acquire land bank. As of March 2019, the company realized the capital expenditure of Rp300 billion.

With the capital expenditure, the company hopes it can support the marketing sales’ target of Rp6 trillion with Rp1.1 trillion in the first quarter (1Q) of 2019.

In that period, Ciputra booked the revenue of Rp1.19 trillion, rose 27 percent from the previous year. Recurring income was the most significant contribution of this revenue. The company pocketed profit Rp283 billion in the 1Q of 2019.

Started on Oct, 22, 1981, Indonesian tycoon, Ciputra established a company called PT Citra Habitat Indonesia. In 1990 he changed its name to PT Ciputra Development, one of the leading and most diversified property companies in Indonesia.

Along with business development, in 1994 the company made an Initial Public Offering (IPO) on the Indonesia Stock Exchange (IDX). In 1999, its subsidiary, PT Ciputra Surya Tbk conducted an IPO and then PT Ciputra Property in 2007. In 2016, Ciputra Surya re-merged with Ciputra Development.

Until now, the company has developed approximately 76 projects such as housing, apartments, shopping centers, hotels, golf courses, hospitals and offices spread over more than 33 major cities throughout Indonesia.

Unit of Ciputra Group has developed residential property projects targeting low-end consumers in several locations, which include in Makassar (South Sulawesi), Cibubur (Jakarta), and Batam (Riau Island), to attract this particular consumers.

US$1 = Rp14.200

Writing by Staff Editor, Email : theinsiderstories@gmail.com

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