FINANCING STRATEGY OF PROPERTY DEVELOPMENT PROJECT (STUDY CASE: APARTMENT RESIDENCE DEVELOPMENT IN SOUTH JAKARTA)

• Main Author: Auditia, Norma
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47563
• Institution: Institut Teknologi Bandung

PT Persada Satu Development is a property development company which is a joint venture between PT Jakarta Satu Development Tbk and Singapore investment company. Since 2010, PT Persada Satu Development was appointed by PT Jakarta Satu Development Tbk to develop one of the company's assets that located in the TB Simatupang, South Jakarta, namely Kencana Development. Kencana Development is a mixed-use development complex consisting of office towers (phase 1) and apartment residences (phase 2). Currently, PT Jakarta Development Tbk and PT Persada Satu Development is planning to develop Kencana Development Phase 3. However, considering the current condition of the property market and PT Persada Satu Development's unhealthy financial condition, the company needs to formulate business strategy and financing strategy so that the Project Kencana Development Phase 3 can be carried out properly. To formulate business strategy for the company, it is necessary to analyze the company's external and internal conditions. The external conditions will be analyzed using the PEST analysis method, Porter's Five Forces, and market analysis of the property industry in Jakarta. Meanwhile, the company's internal analysis will be done through business model canvas (BMC) analysis, financial condition analysis, and project financial planning analysis of the Kencana Development Phase 3. The results of the external and internal analysis will be summarized using SWOT analysis and then mapped into the TOWS Matrix. The TOWS Matrix is use to formulate business strategy within several scenarios the company’s facing. The business strategy that further developed in this research is the S-O strategy regarding the development strategy and the W-O strategy regarding the project financing strategy. The proposed business strategy for the company is to develop property typology which is in accordance with the current market condition and alternative project financing strategies with equity financing, debt financing, and a combined financing strategy. Then the strategy is formulated into a six-year action plan for the development of the Phase 3 Kencana Development Project. The proposed business strategy for the company is the development of apartment residences for the upper middle class and the proposed financing strategy is the combined financing strategy with composition of 40% equity and 60% debt. Business strategy formulation helps the company to execute the project effectively and efficiently so that the company can increase the value of assets and generate profit for shareholders.