Reuters: Hot Stocks: STOCKS NEWS INDONESIA-CLSA sees robust rise in retail, office market rent

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

STOCKS NEWS INDONESIA-CLSA sees robust rise in retail, office market rent Sep 28th 2012, 04:24 Fri Sep 28, 2012 12:24am EDT Retail rent in Indonesia is rising after many years due to rampant retailer expansions, while office space availability is still tight amid high demand, CLSA Asia Pacific Markets said. "We are seeing a shift of power in retail market from tenants to mall operators. After many years, rent finally increased, with major retailer Mitra Adiperkasa succumbing to higher rent hike. It is unlikely to reverse as demand is strong, supply is dwindling, buoyed by supporting demographics," CLSA analyst Sarina Lesmina said in a note on Friday. Mitra Adiperkasa reported higher-than-expected increase in rent renewal for the next five years, 20-30 percent increase compared with 15-20 percent increase before. CLSA termed this a surprise as the luxury retailer occupies up to 30 percent of major malls in Indonesia. Office space shortage is also acute, with strong foreign direct investment (FDI) inflows and business expansion as demand drivers, which might put further pressure on rental growth, the brokerage said. However, the challenge will occur in 2014 when 447,900 sqm of space is projected to be available. Hence, rental rate growth is expected to moderate in 2014, unless absorption remains high due to strong FDI inflows, Lesmina added. CLSA said PT Pakuwon Jati and PT Agung Podomoro have the highest portion of recurring income from operating malls at 95 percent, while PT Summarecon Agung and PT Alam Sutera is also adding retail space in suburban areas. At 10.39 a.m (0339 GMT), the Jakarta Property Index was up 1.16 percent, while the broader Jakarta Composite Index was higher 0.44 percent. 1041 (0341 GMT) (Reporting by Andjarsari Paramaditha in Jakarta) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions