CapitaLand progresses with S$220 million first integrated development and acquires prime serviced residence in Jakarta CBD, strengthens lead as Indonesia’s largest serviced residence operator with new management contract in Bali.

CapitaLand‘s first integrated development in Indonesia, The Stature Jakarta is on track for completion by end 2020 at a total development cost of approximately S$220 million.

It further expands its presence in Indonesia by investing S$74.3 million in a 192-unit serviced residence, Ascott Sudirman Jakarta, through CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott).

Together, this represents an investment of approximately S$300 million in Southeast Asia’s largest economy.

Mr Ronald Tay, CEO of CapitaLand Singapore, who also oversees the Indonesia market, said: “CapitaLand has a 22-year track record in Indonesia which has delivered to-date 16 serviced residences and now, an upcoming integrated development is on track for completion in phases by end 2020. As a pioneer of integrated developments, CapitaLand can leverage strong capabilities across our shopping mall, serviced residence, office and home businesses to create premium quality developments where customers can live, work and play. We have identified Indonesia, the largest economy in Southeast 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. We will continue to explore opportunities to grow CapitaLand’s presence in the country.”

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “Ascott is a market leader in Indonesia with a strong portfolio of 16 properties with close to 3,000 units across six cities. The supply of international-class serviced residences is lagging the rising demand from expatriates and travellers, as more multinational companies set up offices in Indonesia. The Indonesia government has finalised plans for a national rail network that will offer more seamless connection between cities, towns as well as industrial and tourism areas. Touted as the most extensive railway project in the country, it is expected to drive economic and tourism growth, and this will in turn generate demand for accommodation from business and leisure travellers.”