Why invest in Selong Selo?

We provide a seamless process from land purchase to villa construction and rental management.

  • Proof of concept with infrastructure, staff quarters, back of house and clubhouse (Aura Lounge and Bar) completed. In addition, we currently have 11 villas under construction, with 4 villas due to be available for rental by March 2017.
  • Transparent and well respected management team
  • Established on the ground team with over 30 full-time staff based in South Lombok
  • Extensive legals both on and offshore to protect your underlying asset

  • Certainty of boundaries and clear access
  • Differentiated product with extensive facilities including clubhouse, restaurant, bar, swimming pool, tennis court, yoga and children’s facilities

  • Very close-knit community of high net worth individuals from all around the world
  • A firm commitment to sustainable development

  • A corporate social responsibility program that not only enhances Selong Selo’s sustainability program but also helps local communities with small business opportunities.

Why invest in Lombok?

For investors and home buyers, Lombok is great value. It has the natural beauty of Bali without the oversaturation of tourists and for a fraction of the price.

  • Significant discount price to Bali

  • Its natural beauty vs its oversaturated neighbor. The area is a utopia of beautiful beaches, enchanting waterfalls, world class diving, fishing, snorkeling and activities such as golf, kite surfing are now also easily available
  • Firm commitment from the government to invest in infrastructure, including a new airport, a new highway and power stations

  • There’s a strong interest in developing the area, including the planned “Mandalika Resort Area” to be created by the BTDC

  • Growth in international arrivals to Lombok rose with an average annual growth rate of about 26% between 2009 and 2014 (including a 33% increase in international arrivals in 2014 ) international arrivals (Source BPS Indonesia)
  • Strong growth outlook for hotels and residences – for hotels ADR in local currency grew at an average rate of 12% annually in the past five years.

Why invest in Indonesia?

It’s the largest economy in Southeast Asia and it’s continuing to grow.

  • Indonesia has stable real growth and double digit nominal GDP growth, translating into strong and stable EPS growth (18% CAGR over the past 5 years)

  • It has a huge domestic market with a population of 240 million. The investment rating raised to BBB – on par with BRIC nations Indonesia’s Debt/GDP Ratio down from 83% in 2001 to 29% in 2010, lowest level in Southeast Asia

  • Domestic demand, fuelled by healthy demographics, is now being supplemented by a strong investment cycle (FA Investment/GDP 32%)

  • It’s resilient to global weakness as Indonesia’s growth is largely domestic focused. Source: Master Plan: Acceleration and Expansion of Indonesia Economic Development 2011-2025.

Infrastructure:

The new Bandara International Airport in Lombok accommodates up to three million passengers a year.  You can currently fly to Lombok though Air Asia, Silk Air, Garuda and Lion Air. Other airlines are expected to fly direct including Cathay Pacific from Hong Kong which will only enhance the capital appreciation and the growth story.

Additional highways, power stations and associated infrastructure have also been constructed recently.  Fully surfaced roads already connect Selong Selo Residences to the airport and only take 30 minutes from the airport.

Development:

Between 2015 and 2019 there are expected to be 16 new hotels such as Sundancer, Holiday Inn, Royal Tulip that are planned to open and add approximately 1500 rooms to the market. This figure also includes hotel expansion. Further Bali Tourism Development Corporation (BTDC) in conjunction with listed entity, MNC Land, have extensive plans for a large 1200-hectare site, Mandalika project, in Kuta on the south coast. The Ministry of Culture and Tourism is carrying out measures to attract a large number of visitors to Lombok and neighbouring Sumbawa.  As leading consultants, C9 and Horwath recently stated: “With new hotels, will come new flights, and with new flights will come new people, and with new people come new hotels and attractions and with new hotels and attractions…”

Historical Land Prices (log scale)

– click on image to enlarge

Bali Land Prices

Originally I thought of it as an investment given the significantly cheaper prices per Are compared to Bali, but after spending more time there I now think of it as a lifestyle choice with upside from capital price appreciation. It really is as beautiful a place as any photo suggests and as nice as any beach I have been on. The guys were very open and honest to deal with and the clincher for me was the offering of infrastructure- electricity, water, roads which none of the neighbouring developments offer.

Christopher
Investment Banker - Hong Kong