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Business

Real estate developers build up profit

Lippo Karawaci, a property developer in Indonesia is constructing a big town with population of 70 thousand people in Cikarang,on the outskirts of eastern Jakarta. (Photo by Keiichiro Asahara)

BANGKOK -- About a third of the 30 best-performing non-bank ASEAN 100 companies in 2014 were in the real estate development and construction sectors, having benefited from strong demand for housing and offices as well as stepped-up construction of commercial facilities amid the region's increasing urbanization. Companies that are tapping overseas markets also made a strong showing.

     Lippo Karawaci, the core subsidiary of Chinese-Indonesian conglomerate Lippo Group, saw its net profit for the year double from the previous year. Revenue jumped 75%, mainly due to the asset sale of a shopping mall to its Singapore-listed real estate investment trust, Lippo Malls Indonesia Retail Trust. The REIT itself, however, posted lower gross rental income due to the decline of the Indonesian rupiah against the Singapore dollar.

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