Crown Group's Indonesian business targets Singapore listing

CEO Iwan Sunito cited easy access to capital for end-buyers’ home purchases.

The Indonesian business of Australian property firm Crown Group is eyeing a potential listing and is considering Singapore as one of the contenders, said CEO Iwan Sunito.

In an interview with Singapore Business Review, he said, “Singapore is an ideal place to list the Indonesia business due to its easy access to capital sources for both its development investment projects and end-buyers' home purchases.”

Sunito observed that Singaporean buyers are also “keen” investors. He added, “They usually come to us after they have already completed extensive research about their investment options, they are astute investors and they look for apartments in good locations built by reputable developers with a good track record.”

When asked why Crown Group has its sights set on Indonesia, Sunito said he sees “untapped potential” in the country’s middle class. “There will be increasing demand for well-located quality apartments that suit the middle and upper class, given Indonesia’s booming economy and huge market size,” he added.

The goal of the Indonesian business now is to create A$3-4b worth of pipeline projects over the coming years.

Crown Group’s first development project in Indonesia is a joint venture with a local company to build a A$700m apartment development on a well-positioned 4.7 ha site in north Jakarta. “Urban density in cities, particularly Jakarta will boost demand in high-rise developments,” Sunito said.

Crown Group currently handles the A$250m Arc by Crown Group located in Sydney’s Central Business District which will be completed in September this year, the A$395m Waterfall by Crown Group in Waterloo which will be completed in 2020, and the A$1b Eastlakes Live in Sydney’s Eastern suburbs.

Sunito added that a new project in Waterloo, Sydney will be announced next month, whilst new projects in Brisbane and Los Angeles will be announced next year.