CapitaLand has recently invested some S$300 million (US$222 million) into Indonesia, spanning the S$220 million Stature Jakarta – its first integrated development in the country – and a further expansion in the serviced residence sector with the S$74.3 million Ascott Sudirman Jakarta.
Ronald Tay, CEO of CapitaLand Singapore, who also oversees the Indonesia market, said: “We have identified Indonesia, the largest economy in South-east Asia, as one of the growth markets for CapitaLand. Indonesia’s real estate market is underpinned by sound fundamentals such as the country’s steady economic growth, rapid urbanisation, increasing domestic consumption, a rising affluent middle class and a young population.”
Located near the upmarket Menteng commercial and lifestyle district, The Stature Jakarta is jointly developed by CapitaLand and the local Credo Group through a 50:50 joint venture formed in 2014. The integrated development is on track for completion by end-2020.
The development spans a gross floor area of about 5.5ha and comprises the 29-story and 96-unit Stature Residences; the 24-storey Ascott Menteng Jakarta serviced residence tower; the Stature Tower office building; and lifestyle and retail outlets.
Meanwhile, the 192-unit Ascott Sudirman Jakarta, acquired through Ascott’s global serviced residence fund with Qatar Investment Authority and developed by Ciputra Development Group, will be Ascott’s sixth serviced residence within Jakarta’s Golden Triangle. The property is slated for completion in 2018.
Ascott had previously also secured a contract to manage the 230-unit Citadines Canggu Bali, scheduled to open in 2020. With the addition of Ascott Sudirman Jakarta, Citadines Canggu Bali, as well as Somerset Sudirman Jakarta in July, Ascott has expanded its portfolio in Indonesia by nearly 600 units to a total of 3,000 across 16 properties, further cementing its position as the largest serviced residence operator in the country.
On the opportunities in Indonesia, Lee Chee Koon, Ascott’s CEO, said supply of international-class serviced residences lags behind the rising demand from expatriates and travellers as more MNCs set up offices in the country.
He added: “The Indonesia government has finalised plans for a national rail network that will offer more seamless connection between cities, towns as well as industrial and tourism areas. Touted as the most extensive railway project in the country, it is expected to drive economic and tourism growth, which will ill in turn generate demand for accommodation.”