Participation in Townhouse Development Project in Indonesia

Shimizu Corporation (President: Tatsuya Shimmura), as part of its investment business strategy in the Republic of Indonesia, has recently entered into a strategic partnership with PT Agung Podomoro Land Tbk (APL), a leading listed real estate developer in Indonesia. As the first step of this collaboration, Shimizu participates in the townhouse development project undertaken by APL Group in Bandung, West Java. As a real estate developer, APL develops and operates a broad range of properties, including shopping malls, office buildings, hotels, residential apartments and houses, and superblock developments in Indonesia, and Shimizu had undertaken construction of high-end condominiums developed by APL in the past.

In Indonesia, where economic growth continues, demand for houses in the suburbs is growing substantially in line with progress of urbanization and expansion of the middle-income class. In particular, housing shortages in major urban cities such as Jakarta and Bandung are becoming more serious, and needs for further supply of houses are expected to grow. Therefore, Shimizu invests in one of the clusters of townhouse projects within Podomoro Park Bandung, a high-quality township development project led by APL in Bandung.

Bandung, the capital of West Java and the third-largest city in Indonesia, has a population of approximately 10 million and is known not only as a business hub but also as a tourist destination with resort facilities such as hot springs and golf courses, and as an academic city with many universities. Podomoro Park Bandung is located in the southern region, about a 30-minute car drive from the center of Bandung, with excellent accessibility near the highway exit connecting the east and west of Bandung. The entire township development is undertaken by APL's subsidiary, PT Pesona Mitra Kembar Mas (PMKM), and it provides approximately 3,500 houses across 130 hectares of land. From the first launch of the project in 2018, PMKM has already supplied approximately 2,000 houses.

The townhouse development project Shimizu participates in will provide 384 houses (31sqm/unit) for middle-income class in one of the clusters (approximately 4.7 hectares) in Podomoro Park Bandung. The project is being implemented through a joint venture between PMKM and Shimizu’s local subsidiary, PT Shimizu Investment Indonesia (SII) with shares of 80% in SII and 20% in PMKM. Housing sales has started in August 2025, and after the soil improvement work has been completed, construction of houses will be commenced, and houses will be delivered from summer 2027 onward. The total project budget is expected to be about 3 billion Yen.

Through continuous collaboration with APL, Shimizu intends to contribute to further development of Indonesia for long term through supply of quality housing. This townhouse project in Bandung is its first step.