JAKARTA (IFT) - PT Pikko Land Tbk (RODA), a property issuer, will begin marketing the office building project located in the Grand Kemayoran superblock, Central Jakarta, by the end of this year, according to company directors. The office project is in the first phase of construction of the superblock with an investment of around Rp 1.3 trillion (US$ 137.8 million).
Nio Yantony, Director of Pikko Land, said the company allocated an area of 7 hectares for the project.
He explained there are several office towers to be built, including two 30-story towers which units are sold with the system of strata-title. In addition, there are 25 towers with 8-10 stories.
The office space will be offered at the price range of Rp 15 million-Rp 18 million per square meter. The company's overall investment needs are projected to reach Rp 1.3 trillion. Sources of funding will be derived from internal cash, presales and bank loans.
Pikko Land also plans to build malls and upper middle-class apartment complex in Kemayoran, and another office project in Sudirman, Central Jakarta, which will be named Sahid Sudirman Center.
Pikko Land was formerly known as PT Royal Oak Development Asia, but later renamed after 68.1 percent of its shares were acquired by Pikko Land Corporation of Singapore.
IFT Research Department assessed the demand of office space remains high for the next few years, supported by Indonesia's improving economy. Therefore, many companies are expanding or relocating their businesses and need office space.
The high demand for offices in Jakarta is reflected in its occupancy rates. According to research released by Cushman & Wakefield, the office occupancy rate in Jakarta in the first quarter of 2012 grew 0.54 percent to 91.3 percent from the previous quarter. This is the highest level since 1997.
Another property issuer, PT Metropolitan Kentjana Tbk (MKPI) will also launch and market the office building project in the Puri Indah Town superblock in the third quarter of 2012. The launch was rescheduled to third quarter after it was originally planned for this summer. (*)