Township developer PT Bumi Serpong Damai Tbk has allocated IDR2.5 trillion of capital expenditure this year, 66% higher than IDR1.5 trillion in 2011.
The fund will be used to build infrastructure, develop property projects, and acquire land, said Bumi Serpong Damai’s Director Hermawan Widjaja.
The developer plans to develop existing property projects by adding between 2,000 and 2,500 housing units in its residential areas, he said.
The expansion would be complemented with the development of supporting infrastructure in the housing complexes, he said.
The company will also use the capital expenditure allocation to acquire land in Bumi Serpong Damai.It currently controls 4,800 hectares of consolidated land bank, of which the developer itself owns 3,400 hectares.
The company would use internal cash, which amounted to IDR3.5 trillion at the end of last year, to fund the expansion, said Hermawan. It would also use funds from sales proceeds this year.