Metropolitan Kentjana (MKPI) Records Increased Office Rental Business Performance

May 06, 2024, 03.25 AM | Reporter: Leni Wandira

ILUSTRASI. Kawasan Pondok Indah mall dari Metropolitan Kentjana Tbk MKPI di Jakarta Selatan (21/9).Pho KONTAN/Achmad Fauzie

LISTED COMPANY - JAKARTA. PT Metropolitan Kentjana Tbk, a property issuer (MKPI), has reported an improvement in its office leasing business performance throughout the first quarter of 2024.

Jeffri Tanudjaja, the Vice President Director of MKPI, revealed an increase in demand from prospective tenants for MKPI's buildings.

"The current occupancy rate of offices is better than last year. Also, there are quite a lot of requests from prospective tenants," Jeffri confirmed to Kontan on Monday (29/4).

However, Jeffri did not detail the percentage value of the occupancy rate from 2023 to 2024. But, he revealed several reasons why his offices are in high demand among tenants.

According to him, most of MKPI's locations are near toll roads and are TOD-conceptualized with a focus on public transportation.

"For tenants, they are interested because of the good location (near tolls, not subject to odd-even rules) and good and integrated facilities (there are hotels, malls, apartments, golf, water parks), as well as flexible prices (because in our complex there are 5 towers with different rental prices)," he concluded.

Furthermore, his party is currently preparing several business plans for this year. One of them is the plan to develop new projects.

He said MKPI will develop the area currently used by Ranch Market and the ex-Carrefour Lebak Bulus area. In addition, MKPI will also build the Aurelle Pondok Indah housing estate.

As of the end of September 2023, MKPI pocketed net sales and revenue of IDR 1.72 trillion. This figure grew 24.60% year on year (YoY) compared to IDR 1.38 trillion in the same position last year.

From the bottom line perspective, the company managed to reap a net profit for the current year attributable to the parent entity of IDR 638.10 billion. Meanwhile, in the same period in 2022, MKPI's net profit was recorded at IDR 476.97 billion.

Previously, Colliers Indonesia observed a significant increase in office demand since 2023. In research conducted in the first quarter of 2024, office rental rates remained competitive, prompting building owners to offer attractive packages for tenants, especially for new buildings.

However, Colliers Indonesia predicts that office rental rates in Jakarta will grow by about 3% per year from 2024 to 2026.

The flexibility of property owners plays a crucial role in absorbing space, especially in newly operational office buildings. Currently, tenants are actively seeking opportunities to relocate to high-quality office buildings that offer special rental packages, prioritizing factors beyond location and surrounding facilities.

In addition, involving third-party property consultants has become an effective strategy to secure more advantageous transaction deals.