Turtle Reef Nature Sanctuary

TURTLE REEF NATURE SANCTUARY – Hotel and villa development opportunity
Turtle Reef's lands constitute a 100 hectare highland peninsula tucked between the Kuta & Gerupuk villages, 1500m eastward from the famous Tanjung Aan bay where a golf course and a couple of five star hotels shall break ground by 2017. Infrastructure like 4 lane roads, power and water are available at just 500 meter from Turtle Reef.
Turtle Reef's hills are the ONLY freehold oceanfront lands neighboring the national resort (all other lands surrounding Mandalika are either non-oceanfront freeholds, or
oceanfront lands belonging to the Ministry of Forestry).

Mandalika is now being leased (30 year contracts) to hotels and other operators by the  Indonesian state-owned company PT ITDC (of Nusa-Dua Bali's fame). After the groundbreaking ceremony on December 12, 2015 by the Vice-President of Indonesia, a 350 room Club Med resort, a 250 room Pullman, a Royal Tulip are the first three hotels built being built for a total of 1200 rooms (including the worldly acclaimed Novotel hotel designed by Bill Bensley in 1995). As many as 20 hotels and 5000 rooms are planned for the longer term together with a 70 hectare golf course.

As for us, we plan to develop the peninsula as a secluded mixed-use nature sanctuary, with 25 percent of unbuilt common area, such as a tropical bird park, gardens & orchards, a turtle nursery, 10 kilometers of natural trails for trekking, horseback and bicycle riding, etc... but also as a secluded accommodation area with a few low rise/low-density boutique hotels, and clusters of villas for upper segments of the tourism and residential markets. Once the nature sanctuary gets completed, 80% of its land is expected to remain green/untouched.

For year 2020 a 750 kWp solar farm on 15 000 m2 of our land, is planned for connection to the Indonesian Electricity grid. We also plan to invite guests, young as well as young at heart, to the discovery of outdoor activities on those untouched land & water such as horseback riding, trekking, mountain biking, surfing, diving, snorkeling, rock climbing, zipping, kayaking, kitesurfing, sailing & sea safari.

Since sea turtles are often seen on its reef, and got frequently eaten-up when occasionally crawling onshore (till we bought farmers out, we mean), we thought that naming this pristine place Turtle Reef is an appropriate tribute
Since the closing of the domestic Airport in the North of the island and the opening of the International Airport in the South in October 2011, there is too much to explain about the tourism potential of South Lombok in general and Mandalika in particular. So we'll just mention here 4 points.
  1. The International Airport is only 20 minutes away of Mandalika, and now receives direct foreign flights from Singapore, Kuala Lumpur and Seoul with Perth, Hong-Kong, Shanghai and Dubai announced for years 2018-2020.
  2. Well in the trail of its mature sister island Bali, Lombok received only 0.5 million visitors in year 2010. However Lombok has received 2 million visitors in 2015 and 3 million visitors in 2016 !!
  3. Domestic flights from Jakarta, Surabaya, Yogja, Makassar and noticeably from Bali 25 minutes away, have doubled in frequency since the opening of the new Airport, totaling 30 flights per day.
  4. Round the year, occupancies in the four and five star hotels of the whole Lombok island are now at their 15 year peak (70% to 90% occupancy).
Still clearly undeveloped compared to Bali, South Lombok is THE FASTEST GROWING destination for tourism in Asia (+30% of arrivals in 2013, 2014 & 2018)


If there is one day a Beverly Hills in Lombok for luxury and respect of nature, it will arguably be Turtle Reef. Pristine beaches, huge breathtaking karstic cliffs hovering above Mandalika...

Let's survey where else: Mandalika is all government leaseholds. Mawun Bay would have been a candidate however the Sampoerna tobbacco group owning all lands there seems more eager to lease them to high-rise hotels. Finally, Selong Belanak Bay is equally beautiful, with freehold lands for private villas, but beachfronts there are notably prone to ownership disputes, hampered by a lack of legal roads and are moreover one hour away from Mandalika's facilities.

In our search for a first iconic hotel brand, we got warm replies of interest from Ritz Carlton Reserve, Hyatt, Four Seasons, Sofitel and Oberoi headquarters, all for the branding and management of the first villa resort (15 to 30 year duration). Other luxury brands such as Intercontinental, Hilton, Shangri La, Six Senses, Le Meridien... can be approached as well.

Since this hotel will be the first on Lombok island for those brands (at the exception of an Oberoi hotel in the North of Lombok), they show higher flexibility. Most of them already agreed to operate small-medium size (40-90 keys only), with controlled footprint and responsible operational practices.

Then the land is also offered under much sweetened conditions (read below). Bottom line : the project will probably cost 20-40 MUSD only, while other branded projects at Bali, Phuket, Maldives, etc... always cost between 75 and 200 MUSD depending on land size and number of keys. If they wish to do so, foreign investors are welcome to stay, or even relocate, in Indonesia to head monthly meetings with the hotel management once the hotel gets in operation (resident permits get provided for families).

(Although a single ownership is preferred, experienced hoteliers, environment leaders, as well as financial investors, could possibly enter in the development from 3 MUSD upward)

The hotel development needs the erection of 40-80 villas, mostly 1 bedroom plunge pool villas with ocean view, on a 3-6 hectare plot.

For instance, 50 villas averaging 225m2 amount to 11 250m2 built, plus say 3 750m2 built for shared facilities (restaurants, lounge, spa) thus a total of 15 000m2. With prevalent construction rate of 1000 USD/m2 (for top grade materials & interiors), developer will probably reach a budget of 15 MUSD for construction & fittings and a total budget of 18.5 MUSD including architect fees, equipment & utilities. You may desire to round it to 20MUSD to include working capital and safety margins. Developers need to enter into discussion with their architect to ascertain actual figures for the planned resort.

Bank or contractor's loans can possibly be obtained for, say 25% of the budget, once the foreign investment company (called a PMA) has been registered with the Indonesian ministry of Foreign Investment at Jakarta (called BKPM).

Some luxury brands such as Sofitel, Six senses, Shangri La, Four Seasons welcome the sale of villa units to individuals, prior and during the management tenure. From most sources, sale of 30% of villas units prior and during the construction phase can cut the capital requirement by more than 50%.

We could thus feel comfortable with a conservative figure of 10 MUSD of equities if this option is selected by the developer.

Some other luxury brands like Marriott/Ritz Carlton request that hotel developer's company retain full ownership of hotel rooms during the duration of the management contract. With those brands, villa units may only be sold as additional private residences.



As of October 2017, market value of oceanfront lands, with freehold certificates, 25 minutes from International Airport, neighboring the future Mandalika golf course & five star hotels, gently sloping toward the sea and sunset, with private roads avoiding village centers, is above 250 Million Rupiah/Are (190 USD/m2). Nearby, the Elite Havens & Knight Frank real estate company just sold the balance of oceanfront lands of the same Gerupuk/Tanjung Aan peninsula at 325 USD/m2.

As references, market price of non-beachfront land at Kuta village of Lombok is now above 500 Million Rupiah/Are (375 USD/m2). As further references, market price of oceanfront lands further away from Mandalika (7km westward is Air Guling, 5km eastward is Bumbang) is 150-200 USD/m2 when devoid of access uncertainties and ownership disputes.

As further reference, price for 30 year leases on Mandalika is 90 USD/m2 (which would translate into an equivalent price of roughly 270 USD/m2 if Mandalika lands had been for sale). For information of distant readers, beach-front and cliff-front lands at South Bali nowadays command sky-high prices of 1500-4000 USD/m2. Traffic jams keeping increasing as well...

Back to our lands, at the contrary of most other locations which never include an inch of common space, we shall add the cost of protecting forever 25 percent of the land for
common green/unbuilt areas. This comes at a cost but is the only way to develop with
exclusivity and privacy. This increases land value to a minimum of 190 USD/m2 / 75% = 250 USD/m2. To avoid valuation increases during investor's evaluation and contract preparation, let's freeze this value of 250 USD/m2 till December 2017 (since the opening of the international airport, South Lombok's lands appreciate at a steady rate of 20%-30% per annum).

HOWEVER, TO SHARE THE BENEFIT of land owners (main founder of the PMA
company, his Indonesian family, and ISCO underprivileged children foundation)
in enjoying the early development of a maiden luxury-branded hotel within the nature
sanctuary, let's provide a price reduction of 50% on land acquisition, thus parting with
land at 125 USD/m2 only !

Or, if the overall design you select with the international brand fits into a 3 hectare plot, even parting with land for FREE !!

Be it a 50% price reduction on a 6 hectare plot or a "100% price reduction" on a 3 hectare plot, our incentive has a present value of 7.5 MUSD, probably rising above 15MUSD within the next 3 years.

The CEO and his family will develop one midscale 50 key boutique hotel of their own, Net Zero Energy, on a distant 4 hectare plot in 2019, however no other land from Turtle Reef will be offered for subsequent hotel developments before the 3 years following the actual operations of the luxury hotels and golf course (2019+3 years=2022).



  1. For allocation of 6 hectares of land, a developer opting to purchase the land needs a
    budget of 7.5 MUSD only (market value being already 15 MUSD and rising fast toward 30 MUSD at time of payment and time of hotel opening !!).
    (Sale of land can be legally discontinued, with the 35% down-payment withheld as penalty, if developer doesn't develop according to an pre-agreed schedule of 36 months, plus delays for force majeure, if any.)
    Alternatively, if the developer is foreign and wishes a local partner, the developer can ask land owners to convert a 6 hectare land into shares of the foreign investment company (payment of land is thus forfeited).
    (By notarial deed, final land ownership is completely granted to the hotel development company when the villa resort gets actually developed and a management contract with a luxury brand kicks off.)

  3. Alternatively, the developer can opt for a 20 - 50 year leasehold contract, with 20 years at no cost (free use of up to 6 hectares of land), plus a first right to renew the lease or to buy the land. (To prevent detrimental loss of time, a 1.75 MUSD deposit/penalty needs to apply. It will be refunded 36 months later when the branded hotel opens to the public).
  4. Or simply opt for 3 hectares of freehold land for free...

(To prevent detrimental loss of time, a 1.75 MUSD deposit/penalty needs to apply. It will be refunded 36 months later when the branded hotel opens to the public. No deposit needs to apply when the developer opts to purchase some extra land, as on alternative No.1 above.)



Please contact PT Lombok Property and Investment for more information.


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