JAKARTA â€" Property issuer Lippo Karawaci (LPKR.JK) will develop a mixed-use project with total investment of around IDR1.3 trillion in a new central business district (CBD) in Paniki-Kairagi, Manado. The company plans to develop several luxurious residential and commercial projects.

Ivan Budiono, Chief Executive Officer (CEO) of Lippo Homes, the residential division of Lippo Karawaci, said the Holland Village Manado project will sit on lands of 11.6 hectares. The project’s concept will follow Lippo Karawaci’s other mixed-use projects.

“One of the reasons for Lippo Karawaci in eyeing the property market potential in Manado is the high demand for housing and business space,” he said in Jakarta on Monday.

Lippo Karawaci will develop 500 landed houses on eight hectares of lands in the project. The remaining lands will be used for various commercial support facilities. Budiono said the Holland Village Manado project will require overall investment of around IDR1.3 trillionâ€"including land acquisition funds.

The company will release around 270 houses in the initial phase that will be marketed to the middle class, with prices of IDR600 million to IDR1 billion per unit. Lippo Karawaci expects to obtain marketing sales of around IDR500 billion from sales of the entire houses in the project. “We target to market the houses in June.”

Lippo Karawaci has started developing the project in early 2015. The company has spent around IDR200 billion from internal cash for the project’s area infrastructure development.

In addition, the company will also develop a shopping mall and three-star hotel in the Holland Village Manado project, with total area of around 2.6 hectares. Budiono said the mall will include Cinemax facility. “We also intend on developing a hospital and school in the mixed-use project.” (*)