JAKARTA, NNC - Sinar Mas Land, one of the property developers in Indonesia, and Kawan Lama Group, a national retail, industrial and property & services company, formed a joint venture in the property sector. This form of cooperation is to build a mixed use area to maximize the arrangement of residential, business and trade, services, and recreation concepts.
Chairman of Kawan Lama Group Kuncoro Wibowo explained that the cooperation made by Kawan Lama Group and Sinar Mas Land is expected not only to develop the business of both parties but also to contribute well to the community and local city government in terms of development and regional income and employment.
He explained that the realization of cooperation for the first project is to build a mixed-use project in Kota Wisata area in Cibubur. The initial stage is done through the construction of a mall in an area of 8.5 hectares with a building area of about 90,000 square meters. "The ground breaking mall target is the first quarter of 2019, and is targeted to operate in the first quarter of 2021," he said.
In addition to equipping township development as well as accommodating the needs of various residents, this mall is also built as a shopping center as well as recreation and entertainment. Meanwhile, the investment value for this first project is IDR1.2 trillion, with 60 percent ownership or equity for Kawan Lama Group and 40 for Sinar Mas Land.
"Furthermore, the realization of superblock or mixed-use development in Kota Wisata is targeted to start 2 or 3 years after the mall operates, consisting of hotels and apartments. Furthermore, other superblocks will be developed in Grand Wisata Bekasi area, then proceeds to development in Surabaya, Makassar, and other potential areas throughout Indonesia," said Alphonzus Widjaja, CEO of Retail and Hospitality of Sinar Mas Land.
He added that the selection of locations in Kota Wisata, Cibubur at the beginning of this cooperation because it has great potential to be developed, where the area has experienced urban migration from other densely populated areas. Moreover, the integration of property with transportation becomes an important aspect for any real estate developer. This merger is called transit oriented development (TOD), the basic concept of TOD is to integrate existing transportation in the area such as direct access of Cimanggis-Cibitung toll gate which will begin operation in 2018.
This toll road will be connected to Jagorawi toll road and JORR 2 (Tb Simatupang) toll road as well as JORR W2 toll road to Soekarno Hatta International Airport. In addition to private vehicle access, Kota Wisata residents will also be further facilitated by light rail transport transit (LRT) with Cibubur-Cawang-Dukuh Atas route which is planned to start operating in 2018.