For Sale Strategic Boarding House Near Campus, Cashflow & Potential Increase

Specification

Description

Offered strategic boarding house asset with strong investment fundamentals, located in an active educational and economic area, close to a prestigious campus, shopping centers, healthcare facilities, and direct access to the toll gate. This property is in an area with consistent demand from student and worker segments, making it a relevant asset for medium and long-term income-generating property portfolios. The existing building operates as an active boarding house with 10 ensuite rooms, equipped with a guard/manager room, shared kitchen, storage, and motorcycle parking. The surrounding environment is healthy, quiet, and well-organized, supporting stable occupancy rates and good tenant retention. Accessibility and proximity to public facilities are key advantages in maintaining occupancy. Existing Investment Parameters: Acquisition price: IDR 1.5 Billion Number of active rooms: 10 rooms Current rental rate: IDR 650,000/room/month Gross income: ±IDR 78 million/year The building has a two-story structure allowing for expansion, providing significant value creation opportunities through unit addition and product repositioning. Development Strategy (Value Add Strategy): Addition of ±10 rooms (total ±20 rooms) Repositioning into an exclusive boarding house Estimated capital expenditure (CapEx): IDR 500 million Post-Development Projection: Target rate: IDR 1,000,000/room/month Projected gross income: 20 rooms x IDR 1,000,000 = IDR 20 million/month ±IDR 240 million/year Investment Summary: Total capital deployed (acquisition + CapEx): ±IDR 2.0 Billion Estimated gross yield post-development: ±12% per year Potential capital appreciation alongside growth in the education area & infrastructure This asset is suitable for property holdings focused on recurring income portfolios, with relatively low operational risk, diversified tenant markets, and opportunities for value enhancement through professional management and facility standardization. Acquisition opportunities with such value-add schemes are limited. Contact us now to obtain occupancy data, detailed financial simulations, and schedule a site visit before this asset is secured by other investors.