PT Urban Jakarta Propertindo is now intensively collecting landbank for the development of residence with the concept of transit oriented development or TOD to lure urban millennials. The Director of Business Development and Corporate Secretary of PT Urban Jakarta Propertindo Tri Rachman Batara said that the company is currently racing with time in developing the residence with TOD concept and targeting acquisition of lands situated in Jabodetabek areas. “Our current projects are associated with LRT, while LRT must have been in operation next year, which means we have no plenty of time to prepare anything. We see the opportunity to run and collect land bank, that’s why we do the IPO,” Rachman said after the Press Conference of Due Diligence Meeting and Public Expose of PT Urban Jakarta Propertindo in Jakarta, Monday (12/11/2018).
Urban Jakarta targets to trade on the floor of the exchange on 12 December 2018 where 50% of the IPO proceeds will be applied for land acquisition. Urban Jakarta releases 600 million shares which is equal to 16, 85% of total capital paid-up in full after the Initial Public Offering.
Rachman said Urban Jakarta will constantly focus on the development of residence with TOD concept considered as a solution to residence for the community. “As this is an up-to-date approach [TOD development] which also encourages the community to use public transportation and we see the government as very supportive for the TOD development,” he said at least there are 3,6 millions of suburban communities traveling to the center of Jakarta every day where it is expected that residence directly integrated with public transportation mode will deliver the solution of the community habit using private vehicles to Jakarta. In addition, the intensive development of infrastructure is also expected to trigger the change of trend using mass transportation and the increase of buying power and interest of the millennial to invest in property with TOD concept. Currently, Urban Jakarta has secured four TOD residential projects worth IDR10, 2 trillion. The projects are Gateway Park and Urban Signature, which is a joint operation project with PT Adhi Commuter property respectively worth IDR3, 7 trillion and IDR3, 77 trillion, Urban Sky worth IDR1, 41 trillion, and Urban Suites worth IDR1, 58 trillion. He claimed to have sold one tower at Gateway Park, 200 units in Urban Sky, and about 500 units in Urban Signature project. Meanwhile, Urban Suites project will be launched in 2020 due to administration and land acquisition concerns. Rachman said that the project will be launched in 2019 despite the political year. However, he did not inform the details of the project to be launched.