CapitaLand widens Indonesia footprint with serviced residence acquisition

REAL estate group CapitaLand on Wednesday said in a filing with the bourse operator that it further expands its footprint in Indonesia by investing S$74.3 million in a 192-unit serviced residence, Ascott Sudirman Jakarta, through its wholly owned serviced residence business unit, The Ascott Limited (Ascott).

This will be done through Ascott's global serviced residence fund with Qatar Investment Authority (QIA) and the acquisition is on a turnkey basis.

Developed by Ciputra Development Group, it is Ascott's sixth serviced residence within Jakarta's Golden Triangle and is slated to open in 2018.

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

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

Meanwhile, the group's first integrated development in Indonesia that will cost S$220 million to develop, The Stature Jakarta, is slated to be ready by end 2020.

Ronald Tay, CEO of CapitaLand Singapore, 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."

Located near the heart of Central Jakarta's commercial and lifestyle district, The Stature Jakarta is jointly developed by CapitaLand and local developer Credo Group, through a 50:50 joint venture formed in 2014.

Spanning a total gross floor area of about 55,500 square metres, the development comprises Stature Residences, a luxurious 29-storey residential tower with 96 exclusive units; Ascott Menteng Jakarta, a 24-storey premium serviced residence tower; Stature Tower, a 20-storey office building designed to Grade A specifications; as well as lifestyle retail outlets.