JAKARTA – After concluding the acquisition of a warehouse in Tangerang last year, PT Vastland Indonesia Tbk (VAST), a developer focusing in logistics and warehousing, is targeting its revenue to grow 30% year-on-year (yoy) in 2024.

For the record, VAST managed to score 8.1% yoy increase to IDR 25.7 billion in 2023. In other words, the company is aiming to book revenue of up to IDR 33.41 billion at the end of December 2024.

“For warehousing industry itself, the company is feeling highly optimistic,” said Vicky Gunawan, President Director of VAST, when met at Annual Public Expose 2024 today (10/6).

According to Vicky, the optimism is supported by 70% of its warehousing facility that are located in Sumatra, whereas Trans-Sumatra toll road construction continues to take place until now, thus propelling the optimum business growth.

As is known, as of April 2024, VAST is now recording 16 warehouses with 12 units of built-to-suit warehouses, as well as 4 general warehouses.

VAST’s business is indeed dominated by built-to-suit warehouses, the utilisation of which are focused on specific clients with long-term lease contract of 7 to 10 years.

It is worth mentioning that VAST’s customers include several renowned business players, primarily dominated by FMCG sector. For example, there are PT Indomarco Prismatama (Indomaret), PT Tigaraksa Satria Tbk (TGKA), dan PT Hanjaya Mandala Sampoerna Tbk (HMSP).

“100% of our built-to-suit warehouses, within the past 5 years, are extended. It does not eliminate the possibility of area extension requested by the leasing party,” said Vicky.

However, until now, the company claims not to have any expansion plan. The capex allocated for this year, amounting to IDR 1-2 billion, will be allocated for certificates of new assets.

“Until Q1, the capex we spent had reached IDR 282 million, which had been used for certificates of acquisition and fixed assets,” said Stanley V. Gunawan, Director of Finance of VAST.

However, the company said to continue commit on expanding into strategic areas. “Our business strategy is indeed heavy on the built-to-suit warehouses, so we are completely dependent on potential leasers,” said Vicky.

“We also do not limit the possibility to explore several locations that we deem highly potential to be added into our landbank,” added Vicky. (ZH)