CapitaLand expands in Indonesia

This article is more than 12 months old

CapitaLand is expanding its presence in Indonesia by investing $74.3 million in a 192-unit serviced residence, Ascott Sudirman Jakarta, through its wholly owned unit, The Ascott.

Developed by Ciputra Development Group, the project is Ascott's sixth serviced residence within Jakarta's Golden Triangle and is slated to open next year.

Ascott also secured a contract to manage the 230-unit Citadines Canggu Bali that is due to open in 2020.

With the addition of Ascott Sudirman Jakarta, Citadines Canggu Bali and Somerset Sudirman Jakarta in July, Ascott has expanded its portfolio in Indonesia by close to 600 units this year.

CapitaLand also said its first integrated development in Indonesia, The Stature Jakarta, is on track for completion by the end of 2020 at a total cost of about $220 million.

The project, located near Central Jakarta's commercial and lifestyle district, is jointly developed by CapitaLand and local developer Credo Group through a 50-50 joint venture formed in 2014.

It spans a total gross floor area of about 55,500 sq m and comprises Stature Residences, an upmarket 29-storey residential tower, and Ascott Menteng Jakarta, a 24-storey premium serviced residence, as well as Stature Tower, a 20-storey office building with retail outlets.

CapitaLand Singapore chief executive Ronald Tay, who also oversees the Indonesia market, said: "We have identified Indonesia, the largest economy in South-east Asia, as one of the growth markets for CapitaLand.

"Indonesia's real estate market is underpinned by sound fundamentals, such as the country's steady economic growth, rapid urbanisation, increasing domestic consumption, a rising affluent middle class and a young population."