Frasers expands in Jakarta with deluxe flats

Frasers Hospitality, the serviced apartment arm of listed Fraser and Neave, broke ground yesterday for its second property in Jakarta.

Frasers will manage 210 ultra-deluxe apartments in the property, Frasers Suites Kuningan, at Ciptutra World 2. Located in the heart of Jakarta’s golden triangle, it comprises twin towers of 45 storeys each. The complex, which also includes the W Hotel, is expected to be completed in 2014, by which time Frasers will add another two properties to its list in Jakarta. That will bring the total number of apartments Frasers will own or manage in the city to 600.

“As one of the fastest growing countries in the region, Indonesia offers tremendous potential for Frasers Hospitality, particularly with the country’s recovery of its investment-grade status from global rating agency Fitch Ratings, which is expected to attract a further influx of foreign investment,” said Frasers chief executive Choe Peng Sum.

“This in turn will drive a further demand for premium serviced residences, which we are well positioned to meet, as we continue to establish a strong Frasers presence.”

The first complex, which the group owns, has a current occupancy level of 85 per cent for its 108 apartments, Mr Choe said. “That has been a good investment and it is now valued at more than double the S$32 million we paid some one-and-a-half years ago.”

He said the group was also looking for properties outside of the capital, especially in Surabaya and Medan.

Frasers, Singapore’s second largest serviced apartment operator after CapitaLand’s Ascott, currently owns and/or manages about 6,000 apartments in over 30 cities worldwide. It is planning for another 6,000 to come onstream over the next 18 months.

Source : Today – 13 Jan 2012

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