Frasers Hospitality, Fraser and Neave’s (F&N) serviced residence unit, broke ground on 12 January for its second development in Jakarta, Indonesia.
Located in the heart of Jakarta’s golden triangle, Frasers Suites Kuningan at Ciptutra World 2 will comprise 210 ultra-deluxe apartments in two 45-storey towers. It will also feature a W Hotel and is expected to be completed by 2014, by which time the company will add two more properties to its Jakarta portfolio.
“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 Choe Peng Sum, Chief Executive of Frasers.
“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.”
To date, the first complex has an occupancy rate of 85 percent for its 108 apartments. “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,” said Choe.
He added that the company is on the lookout for other properties outside of the capital, especially in Medan and Surabaya.
Frasers, Singapore’s second largest serviced apartment operator, currently owns and/or manages around 6,000 apartments in more than 30 cities across the globe. The group is planning for another 6,000 units to come onstream in the next 18 months.
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