Property groups focusing on healthcare

With health concerns growing amongst Indonesia’s increasing middle class, property groups are also increasingly looking towards the health care business to boost recurring income.

At present, there are 2,337 hospitals scattered throughout South East Asia’s most populous nation, of which just over 30% are private hospitals, as reported by the latest data from the Health Ministry.

Amongst the privately operated are Siloam International Hospitals, opearted by Lippo Karawaci, one of the major listed property developers in Indonesia.

Lippo Karawaci has risen to be the country’s largest private hospital operator following its investments in health care services starting to pay off.

Latest property market news - Lippo group

On Wednesday, Lippo Group broke ground with a mixed-use shopping mall in Kupang, East Nusa Tenggara, in its latest endeavour to develop beyond Java.

The director revealed Lippo Mall Kupang will be built across four hectares, costing approximately Rp600billion ($51million).

The 40,000 square metre shopping mall will quarter Matahari Department Store, Hypermart, as well as the Lippo Group’s movie theater chain, Cinemaxx.

The Kupang mall is amongst the Lippo Group’s major plan to tap into the property market of East Nusa Tenggara.

The group is currently also building a branch of its private hospital chain - Siloam Hospitals – nearby the Lippo Mall Kupang, expected to open in October. It will cover an area of approximately two hectares with 320 rooms alongside 250 catering for patients.

Furthermore, the Jakarta based group will also construct a Lippo Group office, upon an area of approximately two hectares, on the site.

Last year, Lippo inducted the Kupang branch of its hypermarket chain, Hypermart, through Matahari Putra Prima — its lifestyle retail unit.

Beyond Kupang, the property conglomerate is also presently undertaking several projects within areas outside Java - Including Makassar, Padang, South Sulawesi and West Sumatra.

News just in Indonesia

Lippo Karawaci has reported a 35% rise for the first quarter net profit, thanks to its healthcare and residential units.

The largest listed property firm revealed a net profit of 339 billion rupiah {$29.4 million} for the first three months of the year up to March, an increase of 251 billion from the same period during the previous year.

The company’s revenues for its urban and residential development shot up to 53%, as the healthcare unit experienced a 29% increase.

Lippo Karawaci’s properties include residences, hotels, shopping malls and hospitals. The company has revealed that now is a good time to participate in commercial property, so visit www.commercialpeople.co.id soon – we advertise both commercial and residential, with something for everyone.