Thursday, 29 May 2014

Developer reports profit increase, thanks to growing demand for homes

Modernland Realty property developer has reported a substantial 21% increase in profit during the first quarter of this year, owing to a growing demand for homes.

The property developer company’s net income for the first three months of this year was Rp390.2billion ($33.6million), comparable with Rp323billion during the same period last year, as its revenue rose 34% to Rp790billion.

The Tangerang based property developer, Modernland’s portfolio includes a golf course in Tangerang, townships, as well as residential developments within and surrounding Jakarta, plus in Sukabumi, West Java. The company also owns an industrial estate in Serang, Banten.

Modernland’s property sales rose by 34% to Rp761billion during the first quarter, accounting for over 95% of the total revenue of the company.

Revenue from rental fees accumulated to Rp15.6billion, up 49% from the same period last year. The company’s club houses and golf course generated Rp12.5billion, growing almost 50%.

The company has allotted Rp1.3trillion for capital outflow this year, utilised mainly to purchase approximately 1,000 hectares of Jakarta land.

A representative from Modernland, previously announced plans to set aside 400 hectares for an industrial estate with the remainder for other East Jakartan developments.

Modernland has been developing its portfolio in East Jakarta since last year, when the company paid Rp2.29trillion for a 51% stake in Mitra Sindo Makmur (MSM) and Mitra Sindo Sukses (MSS). They jointly hold a 51% stake in Jakarta Garden City, a 270hectare commercial and residential project in Cakung, East Jakarta. Modernland formerly held a 51% in the project.

Modernland also wrapped a deal with a local branch of Japanese retail developer, AEON Mall Indonesia, purchasing 8.5hectares of commercial land in Jakarta Garden City for $45.67million.

As reported by Cuncun, the company expects marketing sales of properties still under construction, to hit Rp4trillion this year, in comparison to the estimated Rp2.7trillion last year.

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