Robust recovery for Pollux Properties Indonesia, some world-class projects completed

14, Oct. 2021

The first phase of the massive Pollux Meisterstadt project on Batam island has been completed. (Photo: Pollux)
The first phase of the massive Pollux Meisterstadt project on Batam island has been completed. (Photo: Pollux)

By Celine Chen

JAKARTA, NNA - PT Pollux Properties Indonesia has not only managed to complete some of its world-class property projects during the difficult pandemic, it also made a buoyant turnaround.

The leading developer of upmarket commercial and residential properties in Indonesia reported a Q2 profit of $8.19 million, up 707.64 percent from $1.02 million the year before.

Q2 revenue went up 122.27 percent to $30.63 million for the company and its subsidiaries, Pollux reported in a press release on Oct. 5.

In the first quarter of 2021, it recorded a revenue surge of 3,113 percent to $13.6 million, reversing losses in the pandemic-induced recession in 2020, the company said.

"Various sectors have been hit immensely, especially property. Despite the difficulties, the group attributes this year's remarkable Q2 performance to the astute leadership from the board and all employees who has led to the successful completion of our key investment properties Pollux Chadstone and Pollux Meisterstadt Phase 1, as well as the efficient operations of our recurring income components within our properties", said Pollux, which is listed on the Jakarta stock exchange.

The management's foresight in focusing on sustainable, integrated mixed-use projects before the pandemic also aided in ensuring its properties would remain relevant and resilient, the company added.

Pollux is confident its 2022 earnings will increase substantially due to new property sales and recurring income after upcoming property launches.

While Indonesia's socio-economic potential remains attractive for investors and developers, Pollux remains cautiously optimistic for the future.

"The economy is still likely to face different challenges and uncertainties, including uneven recoveries across industries, COVID-19 mutations and the subsequent spreading of new variants and other geopolitical risks," it said.

But thanks to the government's plan to tackle the rising demand for home, infrastructure projects to enhance Indonesia's status as a manufacturing, trade and industry hub, the omnibus law to support more foreign investments, as well as the improving pandemic situation, the company is confident about the prospects of the property market.

Even as the group's finances and performances are robust, the management will remain focused on deleveraging and reducing debt by selling non-core assets among other measures.

Despite difficulties posed by the pandemic, the group managed to successfully complete Pollux Chadstone – a world-class development strategically located in the heart of Cikarang city in West Java.

Comprising three high-rise 45-storey apartment towers, one serviced residences tower, a shopping mall, two blocks of upscale hotel suites and a 4-star business hotel, Pollux Chadstone is Cikarang's largest and tallest sustainable landmark.

Raising the bar for standards in living, retail, recreational, office, and public facilities, it serves the city's diverse local and expat communities.

The company also finished the first phase of the massive Pollux Meisterstadt project which will dramatically transform the skyline on Batam island, a short ride from Singapore.

Completed are three tall apartment blocks, a tower housing an upscale hotel and serviced residences, a two-storey mall and shophouse units.

They form part of a 9-hectare integrated skyscraper city being constructed under a collaboration between Pollux Properties Indonesia and the extended family of the late 3rd president of Indonesia, BJ Habibie.

To be built in four phases, the city will encompass 11 skyscrapers in all, including eight apartment towers with a total of 6,500 units, a hospital block, a shophouse district as well as a skyrocketing office tower with a jaw-dropping height of 100 floors.

Pollux has also completed 84,500 sqm of premium office space in the prestigious World Capital Tower located in capital Jakarta's Mega Kuningan.

With its superior Grade A building quality, long-standing relationship with tenants and professional leasing and property management services, the World Capital Tower has become a global financial landmark.

"During the year, the portfolio registered stable performance with satisfactory occupancies amid challenging market conditions," said Pollux.

The group aims to increase earnings performance through the efficient operation of its completed shopping mall, commercial office spaces, hotels and serviced apartments which generate recurring incomes.

It added, "The group is engaging in on-going operator contract negotiations with international hospitality brands to further enrich our market presence, guest experience, and return of investment in the development's hotels and serviced apartments components in anticipation of the international borders reopening."

Both Pollux Chadstone and Pollux Meisterstadt are developed with SRPD (socially responsible property development) processes and equipped with modern building automation systems.

The company is now focusing on recovering time lost from the pandemic by safely reactivating construction, marketing sales, and customer support for its properties and retail malls.

It has kicked off construction for Pollux Technopolis, a futuristic smart business city in West Kawarang in West Java to serve the sprawling Kawarang industrial area.

Pollux Technopolis will serve as the first Central Business District in West Karawang.

Divided into six zones, it will house the Kairaku Residences, which consists of five apartment towers with a total of 2,500 units, and the Louis Kienne Hotel.

It will also feature a Dotonbori Shopping Street with 4-storey shophouses along 1-km-long boulevard - the first shopping street in Indonesia with a Japanese theme.

In addition, the new city will also have the Pollux Mall, one of the largest malls in Indonesia, an 80-storey office skyscraper as well as the largest lagoon in Asia serving as its watery centerpiece.

Meanwhile, Indonesia is preparing to reopen popular Bali island and the Riau Islands to foreign visitors from select low-risk countries this week.