Build Mall, Sinarmas Land Recurring Income Increase

Sinarmas Land, a new brand consolidation of four companies owned by property tycoon Eka Tjipta, plans to increase the share of recurring income or recurring income from total sales.
"Now the contribution of recurring income from new revenue 20 percent," said Good Prastowo, Head of Division, Corporate Communication and Marketing Sinarmas Land. The rest comes from sales of strata title properties. The target, this recurring income can contribute up to 40 percent of total revenue. Normally recurring revenue derived from leasing business, like renting a mall or hotel.
Good said that during this DUTI become the biggest contributor to recurring income. DUTI has a hotel, shopping center ITC manage, and DP Mal Semarang.
This year BSDE will follow a new mall to support recurring business income. But Good still could not reveal plans to build mall in this BSDE.
According to Good, increase recurring income necessary to minimize the risk of breakdown of revenues, for example when a crisis "At least there is income from tenants," he said.
This year Sinarmas Land sales target of Rp 2.5 trillion. Throughout the first three months of 2011, the company managed to realize its 25 percent target. "The biggest contribution of BSDE by 20 percent," said Good.
Sinarmas Land is a new brand after PT Bumi Serpong Damai Tbk (BSDE) acquired three affiliated company PT Duta Pertiwi Tbk (DUTI), Sinarmas Exemplary, and Sinarmas Wisesa. Land Consolidation Sinarmas that lead as the new entity is targeted to be completed in the second half of 2011.