Crown Group does not turn a blind eye to expansion opportunities in Indonesia.
REPUBLIKA.CO.ID, SYDNEY – Leading international property developer Crown Group plans to build its apartment development pipeline over a five to 10 year period with optimism about Australia’s economic recovery and the health of the apartment property market.
Crown Group revealed its planned acquisition of three significant development sites north of Sydney for approximately IDR 5 trillion as the company focuses on diversifying into the mixed-use and Built-To-Rent sectors.
Crown Group Commissioner and CEO, Iwan Sunito, said the company will expand its presence in Sydney while looking at other opportunities in Melbourne, Brisbane and even Indonesia.
“Our focus remains on Australia, but we also cannot close our eyes to the opportunity for expansion in Indonesia as one of the countries included in the top five countries in terms of GDP according to the World Economic Forum,” said Iwan in a release, Tuesday (6/7). .
“We have enough projects in our current development plan, but we want to start planning for the next five years,” said Sunito.
“Currently we are busy with three business pillars: residential, growing the SKYE Suites brand, and growing our retail business,” he said.
Iwan Sunito said his current focus is the completion of the first phase of Grand Residences, a mixed-use project in Eastlakes, Sydney, which includes 133 apartment units and 14,000 square meters of retail space.
“The market today is more realistic than three or five years ago because foreign groups and state-owned companies have left the market. The market is contracting due to the Government’s policy towards foreign buyers who have to pay a purchase tax of twice as well as difficulties in finding access to funding or loans,” he said.
“Covid-19 and the closing of international borders have also dramatically impacted the residential apartment market in Australia, where foreign buyers typically make up at least 50 per cent of buyers,” he said.
Iwan Sunito said he believed now was the right time to acquire development land for the short term from sectors affected by the Covid-19 pandemic and border closures.
“While international borders remain closed, growth will be significantly stunted. This is why we are now looking at new development opportunities,” he said.
“We are aware that development site owners are becoming more realistic in their price expectations and terms of sale arrangements,” he said.
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