Non-retail business dents Metro Holdings
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Despite a rugged first half, property development and investment group Metro Holdings has still managed positive results and has formed strategic partnerships in Indonesia.
It had a net profit after tax of S$4.6 million (US$3.3 million) despite a net loss after tax of $13.6 million as the result of events not related to its retail developments.
Meanwhile, it is moving ahead with a IDR1.99 trillion (US$147.2 million) mixed project in Bekasi, Jakarta. For the retail component it is partnering with Trans Corp, while Lee Kim Tah Group will handle the residential side.
Trans Corp will develop its trademark Transmart mall with a gross floor area of about 30,485sqm, including department stores, supermarkets and cinemas, as well as a theme park in conjunction with Kidcity and Snow Town.
Metro chairman Winston Choo says the group has worked with Trans Corp since it took an initial stake in Metro Indonesia in 2008 to run Metro’s retail department store business.
Metro’s retail arm runs three Metro department stores in Singapore and another nine in Indonesia.
Questions & Answers
Q.How did Metro Holdings achieve a net profit despite significant losses?
How did Metro Holdings achieve a net profit despite significant losses?
The company reported a net profit after tax of S$4.6 million, even with a S$13.6 million net loss from events unrelated to its retail developments. This suggests other profitable areas offset these non-retail losses.
Q.What is the nature of the large project Metro Holdings is undertaking in Bekasi, Jakarta?
What is the nature of the large project Metro Holdings is undertaking in Bekasi, Jakarta?
It is a IDR1.99 trillion (US$147.2 million) mixed-use development. This project includes both retail components, featuring a Transmart mall, and residential properties.
Q.What will the retail component of the Bekasi project offer to consumers?
What will the retail component of the Bekasi project offer to consumers?
Trans Corp will develop a Transmart mall with a gross floor area of about 30,485sqm. It will include department stores, supermarkets, cinemas, and a theme park in conjunction with Kidcity and Snow Town.
Q.What is the history of Metro Holdings' partnership with Trans Corp?
What is the history of Metro Holdings' partnership with Trans Corp?
Metro Holdings has worked with Trans Corp since 2008 when Trans Corp took an initial stake in Metro Indonesia. This partnership was formed to run Metro’s retail department store business.
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