JAKARTA (IFT) - Property company PT Pikko Land Tbk (RODA) has spent Rp 300 billion of its capital expenditure (capex) as of August, 30 percent of this year’s Rp 1 trillion allocation. The low realization is due to slow processes of negotiations of acquisition and projects.
This year, Pikko Land plans to acquire five property companies or projects, but only one has reached the final stage of negotiation—ready to be acquired, the Sahid Sudirman Center worth Rp 72 billion. Four other projects are still under negotiations. Nio Yantony, President Director Pikko Land, targets to have one more company acquired by next week, with a value of around Rp 110 billion.
Silvana, Director of Finance at Pikko Land, said the capex had been used for, among others, acquiring and developing the Sahid Sudirman Center office project, the Grand Kemayoran superblock project, and the Botanica Residence apartment project. This year’s capex is sourced from internal cash, pre-sales and bank loans.
Pikko Land was formerly called PT Royal Oak Development Asia Tbk. Once acquired by Pikko Group from Singapore, the company took over Royal Oaks shareholding and property projects. At the present, Pikko Land has two office projects and six residential projects.
In the first semester of 2012, the company booked Rp 83.25 billion in revenue—a 128.1 percent YOY increase, and a net profit amounting to Rp 33.75 billion. This year, the company set its revenue target at Rp 1.2 trillion, while net profit target is set at Rp 150 billion.
Another property company, PT Agung Podomoro Land Tbk (APLN), also plans to acquire a company and its project. Indra Wijaya, Vice President Director of Agung Podomoro, said the company is currently finalizing the acquisition of six project sites and land.
"One of them is located in Kelapa Gading, North Jakarta," Indra said.
In Kelapa Gading, the company plans to develop a vertical housing project and a superblock project. Indra expects the acquisition can be completed by the end of this year. (*)