Monday, May 28, 2007

The intricacies of real-estate transactions


So the real estate search for the right spot started in March when we came to Jakarta. We want a spot where we can be close to the upper middle market, where we dont have to worry about people just browsing through. First we thought it would be a good idea to set up shop in Kemang... way too expensive... rent there is the equivalent of trying to set up shop on Rodeo Drive. Prices are through the roof and size is so not. I by the way want to mention we are trying to stick to a budget here, since ... well... it's pretty much our savings and then some. In any case as they say in Indonesia tidak jadi or didn't happen. After that we set our sites ona project right outside Kemang in an area called Warung Buncit... and that took forever. Between negotiations and re-negotiations I came to the crystal clear realization that nothing here is a set price, people will try to get as much from you as they can and will wear you out trying to get there. We "negotiated" for a month with no real result. Finally we went to this tiny boutique mall in the middle of the diplomatic area of Kuningan with 2 towers for condos and a large office and retail area. It's been open for about 6 months... still pretty empty, which scares me, but it has its fair share of entertainment places and from what I hear it will also have a high-end japanese supermarket (which is always a good sign of things to come) at least here...it means expats coming from around the area to shop here. Now I think I should explain our conceptor maybe I should leave that for another posting... suffice it to say that this seems like a good match coupled with the owner knowing one of our investors = a pretty good deal on rent, which though a little steep, for all 700 square feet means we finally have a spot with potential. But for now we have to deal with a mall that is about 75 percent empty... fairly scary, but its in the best interest of the owners to increase traffic flow, and though it may take a while I think we can wait it out. It will give us some time for training and for making sure we have all the kinks ironed out before we get full on busy. By the way this is our mall. The Bellagio Boutique Mall....pretty ain't it?

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