Business as usual for property companies by Sarina Lesmina - CLSA

On-the-ground info shows that property companies are still doing launches left and right:

• BSDE will launch a 7ha cluster project in Serpong; pricing is yet to be determined, but
should be in a range of 10-15% increase from last year. Average selling price in its project has
increased from US$180 psm to US$270psm in two years, a total of 50% increase. BSDE’s
Headquarter in the future Office Park will be ready this year. To attract more businesses into its project, BSDE will then launch leased offices at US$10 psm pm. The first tower will be built by end of this year and operational in 2012. The Park will include a 15,000sqm F&B area. January
marketing sales was Rp150bn. BSDE is targeting a Rp3.5tn marketing sales this year (+52%
YoY), which includes targeted sales from DUTI.

• SMRA to launch 90 units shophouses in its Serpong estates on 26 Feb, with price of Rp1.3-
4bn per unitSMRA did not do any new launches in January; the company is yet to publish their Jan
sales figure. SMRA also plans to launch a studio type dormitory for students at Rp300m per unit
this year. The company will launch 1,200 units, out of which 600 will be launched this year. This is a 40sqm unit.

• Alam Sutera (ASRI IJ) reported a strong marketing sales for January 2011 at
Rp300bn. The company is targeting a Rp1.755tn sales this year, up ~9% from last year.
The company mentioned that it plans to slow down sales in Serpong (to conserve land bank),
but will launch its new Pasar Kemis project this year. Hence, the company expects
Rp1.5tn sales from Serpong and Rp200bn from Pasar Kemis’s sales. Last year, ASRI sold
Rp1.6tn worth of property.

• Bakrieland (ELTY IJ) opens Rp400bn five-star condotel in Kuta, the Pullman Hotel
Legian Nirwana Bali last Friday, marking the completion of its Rp400bn investment in the
only five-star hotel in Kuta beach area. The 360-room development will be managed by
Accor International. ELTY said that 95% of the 360units have been sold. The hotel and
resort is located in a 2.4ha land. The company provides a guarantee yield of 6% in US$ to
investors for the first 3 years, and 21 free nights in a year.