Weighing NZIA’s Subsidized House Business

By Editorial Team 26/09/2019
Summary

PT Nusantara Almazia Tbk earned Rp 101.53 billion proceeds from the initial public offering (IPO) on Wednesday (9/25). The NZIA stock-coded property developer will use 38.62 of the proceeds to acquire a 68 percent stake in PT Serena Inti Sejati, a subsidized housing developer based in Karawang Regency, West Java. Currently, NZIA will build more than 5,800 subsidized houses with the housing finance liquidity facility (FLPP) from the government on 60 hectares of land banks owned by Serena Inti Sejati.

NZIA eyes to roll out subsidized houses development in stages starting from 2020 to 2025. In the first year, the company will build 1,100 units with an investment of Rp 22 billion to Rp 40 billion. Later, NZIA will sell the house at Rp 150.5 million per unit with the installments of only Rp 1 million per month under the FLPP scheme. NZIA estimates sales from the subsidized house to contribute Rp 150 billion to total revenue. Besides subsidized housing, NZIA also owns a transit-oriented development (TOD) residential project in Tangerang.

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