Nishi-Nippon Railroad Co., a Fukuoka-based railway operator diversifying into retail and property development, is planning to build condominiums in Indonesia in partnership with a local firm, aiming to cater to growing housing demand east of Jakarta.
The company, operating in northern Kyushu, has agreed with Damai Putra Development to establish a joint venture to build twin condo towers with 1,531 units. The project in Bekasi city, West Java province, is expected to cost about 530 billion rupiah ($39 million).
The site is located near a college and a hospital being built in Kota Harapan Indah, the largest township development area of about 2,200 hectares in the city, which has a growing population of about 2.6 million due to continued industrial expansion in the greater Jakarta metropolitan area.
The planned joint venture, to be 45 percent owned by Nishi-Nippon and 55 percent by Damai Putra, will start work on the first complex with 590 condos in May 2019 and expects to complete the second tower with 941 condos by June 2022.
A mainstay one-bedroom type with an average floor size of 23 square meters will be priced at around 300 million rupiah, mainly targeting workers at the school and hospital, as well as young people working in the city or north of Jakarta.
Nishi-Nippon forayed into the largest Southeast Asian economy last year through the large-scale joint development of a residential and commercial complex on the outskirts of Jakarta with local developer Sinar Mas Land and Japanese partners, including trading giant Mitsubishi Corp. and two major railway operators.
The company has also developed condos and hotels in Vietnam, South Korea and Thailand. It has positioned property business expansion in Asia as a pillar of future growth along with the international logistics business under its medium-term management plan.