Wika realty ready to work on integrated zones

JAKARTA. PT Wika Realty is more actively expanding to property business. The business line of PT Wijaya Karya Tbk (WIKA) is ready to develop property zones, which are connected to mass transportation or transit oriented development (TOD) in Tegalluar Bandung and MT Haryono, Jakarta.

The two TOD areas will be the transit spots of the property zones. To date, Wika Realty has secured 436 ha areas in the two locations.

This company will develop TOD Tegalluar through its subsidiary PT Tegalluar City Development (TCD) in the area of 430 ha. The property project in that area will be integrated with the Jakarta-Bandung fast train. “The Tegalluar project is a project of new city,” said Director of Commercial and Property of Wika Realty, Friday (27/1).

Wika Realty will also develop an integrated property project in a six ha area around MT Haryono Road, Jakarta. The property project will be integrated with a light rail transit (LRT) station and Transjakarta bus stop.

Wika will delegate the construction work of the projects to PT Jakarta River City, a joint venture company between Wika and a China’s state owned enterprise China City Construction Thirteenth Engineering Bureau Co Ltd (CCCC). Wika controls 70% of the ownership, while the rests are under CCCC’s ownership.

Widyo is targeting to realize those two integrated property projects in this year.

Rp 2,4 trillion capital expenditure

Aside of TOD property projects, this developer will also launch several other projects in this year, such as apartment project in Antapani (Bandung, West Java), integrated property project in Bendungan Hilir (Jakarta), industrial and residential zones in Makassar, South Sulawesi through its subsidiary PT Makassar Coastal City, hotel resort project in Ubud (Bali), and other property projects in Jakarta.

Wika Realty will also continue some residential projects in several regions. This corporate’s strategy aims at achieving the target of sales as much as Rp 2.24 trillion in this year. This target is 11% higher than the pre-sales achievement in 2016 that amounted to Rp 2.04 trillion.

This company is optimistic to achieve the target, on the grounds that the business property would be supported with some incentives, such as the loan to value or LTV relaxation, the interest rate reduction, as well as tax amnesty.

Widyo added that the company has prepared Rp 2.4 trillion of funds for property business development and land acquisition. The company is planning to acquire lands in two locations in Jakarta. To date, Wika Realty has controlled about 200 ha areas. (Muhammad Farid/Translator)