Keppel Land spends $266m on expanding major office tower in central Jakarta

SINGAPORE - Keppel Land is spending $266 million to redevelop the existing International Financial Centre (IFC) Jakarta Tower 1 into a 49-storey state-of-the-art office tower.

This will more than double its net leasable area (NLA) to approximately 69,800 sm of premium grade office space.

The redevelopment of the building follows Keppel Land's recent announcements on the expansion of its mixed-use developments in Vietnam and the Philippines - namely the 37-storey office tower in Saigon Centre Phase Two in Ho Chi Minh City as well as the 42-storey office building and retail mall extension of the SM-KL project Phase Two in Manila.

Located along major thoroughfare Jalan Sudirman in Jakarta's financial district and within the golden triangle zone, the current 18-storey IFC Jakarta Tower 1 was completed in 1985 and is 100 per cent owned by Keppel Land.

It is currently fully occupied with anchor tenants including Bank Mutiara, Tower Bersama, Ithaca Resources and Rintis Sejahtera.

Mr Sam Moon Thong, President (Indonesia) of Keppel Land, said: "We are confident that the prime location and premium quality of the IFC Jakarta complex will attract multinational and local corporations seeking a prestigious address in Jakarta's CBD."

Demolition works is targeted to begin in the first quarter of 2016. Construction works for the new tower will follow and is scheduled to be completed in the fourth quarter of 2019.

The Economist Intelligence Unit has forecasted foreign direct investment (FDI) levels to remain healthy at an annual average growth rate of 8.7 per cent from 2015 to 2018. This, coupled with the resilient economy, is expected to boost demand for quality office space as more companies set up or expand their presence in Jakarta.

Besides IFC Jakarta, Keppel Land's portfolio of projects in Indonesia includes a three-hectare residential site in West Jakarta acquired earlier this year and Ria Bintan, an integrated resort comprising hotels and championship golf courses.