JAKARTA (TheInsiderStories) – Publicly listed firm, PT Lippo Karawaci Tbk (IDX: LPKR) reported has pocketed marketing sales Rp1.31 trillion (US$90.34 million) during the first quarter (1Q) of 2021, jumping 86.34 percent compared to the same period of last year. The realization was 37.42 percent of this year’ target of Rp3.5 trillion.
Last year, the company booked revenues from the marketing sales of Rp2.67 trillion, or up 45 percent from the previous year. To support this year targets, the issuer prepared capital expenditure Rp4 trillion. According to the finance director, Yudhistira Rusli, the marketing sales revenue was driven by middle class segment.
In addition, he said in an official statement released today, the demand for Lippo Karawaci‘ ongoing projects such as multi-storey buildings has also shown positive developments. Not only the residential segment, the commercial sales also skyrocketing 965 percent to Rp53 billion from a year ago and the industrial segment increased by 162 percent to Rp203 billion.
Earlier, the CEO, John Riyadi, has said the targets will be supported by the multiple landed housing launches. He rated the property demand has recovered since the third quarter of 2020 and sees the businesses will rebound again driven by purchasing power in the next two to five years.
In addition, said the oldest son of James Riyadi, Bank Indonesia has lowered the interest rate and will support the mortgage loans growth in the country. Lippo Karawaci also noted that the current level of home ownership in Indonesia is still 80 percent and in Jakarta was around 48 percent and became the opportunity by the real estate players.
The holding firm is a listed property company in Indonesia, with a sizable land bank of around 1,411 hectares as of Sept. 30, 2020. It owns and manages — either directly or via its real estate investment trusts, including 56 malls, 39 hospitals and 10 hotels.
Present in 40 cities, the two units, PT Lippo Cikarang Tbk (IDX: LPCK) and PT Gowa Makassar Tourism Development Tbk (IDX: GOWA), with ownership 84.0 percent and 62.7 percent has developed and operate Lippo Cikarang in Bekasi, West Java and Tanjung Bunga in Makassar, South Sulawesi.
The company also has a 55.4 percent stake in PT Siloam International Hospitals Tbk (IDX: SILO), a network of private hospitals in Indonesia, with 37 hospitals in 24 cities throughout Indonesia. Plus, a unit on the real estate investment trust listed on the Singapore stock exchange, namely Lippo Malls Indonesia Retail Trust (LMIRT) with assets managed by $1.3 billion in the 1Q of 2020.
The developer holds a 58 percent stake in LMIRT, following the completion of the latter’ rights issue in January 2021.
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