Lippo Cikarang is preparing to build 1,200 apartment units in three towers, with units going up for sale in November.
The 400 to 500 units in the first tower will be put on sale for between Rp 350 million ($37,000) and Rp 600 million each. Sales will open in November with the groundbreaking planned for six months after the first offer, Lippo Cikarang vice president Ju Kian Salim said on Tuesday.
“However, the groundbreaking can be moved forward if enough apartment units are sold,” Salim said after a tree-planting event held in conjunction with Auto 2000, a Toyota dealership, in Cikarang, West Java.
He said Lippo decided to proceed with the apartment project after considering the high market potential in the area, especially in light of the number of companies operating in the Lippo Cikarang industrial zone. The growth of industry there has also pushed up the demand for residences.
“The apartments are aimed at local investors who plan to rent them out to expatriates,” Salim said.
Towers will have between 15 and 18 floors and will be composed of one- and two-bedroom units. The first tower is estimated to be handed over to the buyers in mid 2014.
Salim said that besides building the vertical residences, the company will also hold the grand opening for a complex of large residences, the Emerald Mansion. The 102 upmarket residential units in this complex are priced between Rp 2.5 billion and Rp 4.2 billion and are targeted at companies operating in the Lippo Cikarang industrial zone. Each unit has a floor surface of either 275 or 342 square meters, and are built on lots ranging from 288 to 364 square meters. Emerald Mansion is the fourth residential product launched by Lippo Cikarang this year.
Lippo Cikarang owns a total of 3,000 hectares of land. Of the land designated for industrial purposes, around 100 to 200 hectares have yet to be developed, while approximately 1,000 hectares designated for residential and commercial purposes remain undeveloped.
“We plan to seek additional land for our land bank to meet the continually increasing demand for industrial plots,” Salim said, “But the location and characteristics of the land, we cannot yet divulge.”
He said that the company was also trying to attract investors to residential, commercial and industrial land in Lippo Cikarang by creating a green and leafy atmosphere, including by planting trees. This step is supported by a number of partners and other companies in the areas, including Auto 2000, one of the companies now planting 1,000 plants on the banks of the Delta Silicon 5 Lake.
The re-greening of Lippo Cikarang has been ongoing since 2010 and a total of 85,000 trees have been planted so far. The number is expected to grow to between 90,000 to 100,000 by end of the year. The types of trees planted include the trembesi, or rain tree, teak, sengon and mahogany.
“So far, this program has been able to push our sales up,” Salim said.
Speaking at the same occasion, Rudy Andre, who heads the Cikarang branch of Auto 2000, said that the re-greening efforts, in coordination with Lippo Cikarang, are part of the company’s corporate social responsibility scheme.
The program also supports re-greenings in other areas in Cikarang where Auto 2000 operates.
Lippo Cikarang and the Jakarta Globe are both affiliated with Lippo Group