GS E&C will enter the Indonesian housing development business. GS E&C announced on February 22 that the builder will develop a 1,445-household apartment complex in Jakarta with the Vasanta Group, a leading developer in Indonesia.
GS E&C held the 'City Gate 88' Project JV (Joint Venture) ceremony with the participation of Tri Ramadi, chairman of the Vasanta Group and Kim Gyu-hwa, a senior managing director of housing sales and development at GS E&C.
The two will go fifty-fifty in terms of stakes in the project. The Vasanta Group will invest land while GS E&C is planning to invest US$20 million in the project. The project is expected to post US$ 200 million in sales.
The project will build five 25- to 30-story apartment buildings with 1445 apartment houses, each of which which will be 21 to 59 square meters and commercial facilities in the Daan Magot area of western Jakarta which is emerging as a new residential district in Jakarta, Indonesia. The sale and construction period will run for a total of six years.
West Jakarta is considered a preferred location for the high and middle classes as the area has good access to the downtown and the development of apartments is in full swing in the area. An outer circulating road was opened in 2014 for the area and ground will be broken soon for Jakarta City Railway MRT Line 2.