Commercial Buildings
Lotte Engineering & Construction (President Kim Chi-hyun) signed a contract for the Kota Kasablanka Project Phase Two with Pakuwon Group in Jakarta, Indonesia, on Aug. 3 to construct complex commercial buildings. The project, worth about 149.1 billion won (US$128.09 million), including value-added taxes, is to cover a total area of 336,596 square meters, including underground parking lots, and to build one office building and two apartment buildings with 42 stories above ground and five underground levels to accommodate 1,196 households.
The signing ceremony was attended by Lotte Engineering & Construction President Kim Chi-hyun, Pakuwon Group Chairman Alexander Tedja, and its President Eiffel Tedja. The Pakuwon Group is the leader of a mega residential-commercial complex development business in Indonesia.
In a consortium with local company Totalindo, Lotte E&C has obtained the order. The construction is to begin in Aug. and to take 32 months, to be completed in April 2018.
The Kota Kasablanka Project, divided into two phases in total, will be located in the central commercial district, called The Golden Triangle, in Jakarta, the capital of Indonesia. The first phase of the project has been already completed and currently in operation as the mega multipurpose commercial complex.
Meanwhile, Lotte E&C has won the Grati Combined Cycle power plant extension project, commissioned by Indonesia's state-run utility firm PT Perusahaan Listrik Negara, in June. Construction is slated to begin at the end of this year.
The Indonesian construction market is estimated to be US$267 billion won (310.79 trillion won) as of 2014, and rated number four in Asia, following China worth US$1.78 trillion (2,071.92 trillion won), Japan worth US$742 billion (863.69 trillion won), and India worth US$427 billion (497.03 trillion won).
Lotte Engineering & Construction President Kim Chi-hyun said, “This is the first construction project won by Lotte E&C in Indonesia. Accordingly, we have established a bridgehead to tap into the Indonesian construction market in the future. Through the strategic alliance with Pakuwon, the leading real estate enterprise in Indonesia, we will keep establishing lasting partnerships in the future.”
With a goal of obtaining more overseas orders this year, Lotte E&C chose Indonesia and Vietnam as strongholds. The company is planning to expand its business areas in the two countries from the architectural construction to civil engineering construction.