0 Karawang Sales Aid Surya Semesta

Profit at property company Surya Semesta Internusa may have tripled last year given the period includes the sale of land on an industrial estate in Karawang, West Java. The company said its industrial estate developer unit sold an estimated 123 hectares of land at the estate for $94 per square meter last year. Proceeds from the sales may reach Rp 1.1 trillion ($114 million), about a third of its total revenue in 2012. The company sold 208 hectares of industrial land in 2011 at about half the price — $43 per square meter. It raised Rp 798 billion in proceeds from those sales. 

The price of industrial land has risen rapidly in recent years on the back of strong growth in foreign direct investment into Indonesia’s manufacturing sector as well as the expansions of local businesses. Surya Semesta says its 2012 net income was likely to have surpassed Rp 700 billion, well beyond its Rp 650 billion target. That upper figure is triple the Rp 252 billion net income it posted in 2011. Its revenue was forecast to jump 14 percent to an estimated Rp 3.3 trillion last year from Rp 2.9 trillion a year earlier. 

“The rising income in 2012 was mostly backed by Surya Semesta Internusa’s subsidiary, Suryacipta Swadaya, a developer and manager of 1,400-hectare industrial estate Suryacipta City of Industry in Karawang,” the statement said. The company’s revenue also came from its construction services business, rent of its office buildings Graha Surya Internusa and Glodok Plaza, and its hotel operator, which manages the Gran Melia in Jakarta and Banyan Tree Ungasan Resort in Bali. The statement also said that the company expected this year’s revenue to reach Rp 4.3 trillion, 30 percent higher than the estimated revenue in 2012. 

The company is aiming to have Rp 850 billion in net income this year, about 21 percent higher than last year’s likely result. “The growth will be supported by the projected strengthening momentum in sales of industrial estate and the growth potential in construction services and hotels,” the company said in the statement, which was released through the Indonesia Stock Exchange. Property consultancy Cushman & Wakefield in its outlook for industrial property demand this year said that it expects prices to continue growing albeit at a slower pace, with many developers bringing new projects online. 

“With significant amount of ‘pent-up’ demand, the overall industrial market in 2013 is expected to remain positive, with demand generation still being driven by foreign industrialists,” the firm said. Shares in Surya Semesta rose 3.3 percent on Monday. Last year, the stock rose 51 percent, beating the market average.

source : the jakarta globe