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Metro, Lee Kim Tah Group tie up with Indonesian group for 1.99 trillion rupiah investment in Bekasi project

METRO Holdings and Lee Kim Tah Group's wholly-owned Shawco have inked a master agreement with Indonesian-based group PT Trans Corpora (Trans Corp) to jointly develop, market and sell five 32-storey residential towers in Bekasi, Jakarta for a total investment value of 1,987 billion rupiah (S$200.4 million). (see amendment note)

The plan is in line with Metro's strategy to expand its retail interests into the East Asia and South-east Asia region.

Last month, Metro announced the incorporation of a new subsidiary in Indonesia, PT Metro Bekasi Investment (MBI) which will undertake the transactions under the master agreement and is 90 per cent owned by wholly-owned Metrobilt Construction and Shawco.

The Metro Group's 90 per cent commitment for the investment is approximately 1,788.3 billion rupiah which will be funded primarily from internal cash sources, said the company. (see amendment note)

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The counter slipped 0.5 Singapore cent or 0.4 per cent to finish at S$1.27 on Friday.

Amendment note: An earlier version of this article stated that the total investment value of the Bekasi project was 1.99 billion rupiah and that Metro's 90 per cent commitment for the investment was 1.79 billion rupiah. The article has been amended to reflect the changes.