Courts Asia to close Indonesian megastore
Courts Asia is to close one of its Indonesian megastores.
“The group decided to close the Courts Bumi Serpong Damai (BSD) City Megastore in Tangerang as it is historically not profitable and the group does not want to incur the high rental costs over the remaining lease term,” the retailer said in a statement.
Courts Retail Indonesia will also buy the property it currently leases which houses the Kota Harapan Indah (KHI) megastore.
Both properties were leased from Garwita Sentra Utama. Courts will forfeit a security deposit of Rp14.38 billion (S$1.379 million) and pay a penalty for early termination of the BSD site of Rp 38.7 billion ($3.6 million). The Singapore company will pay Rp97.56 billion (S$9.36 million) to purchase the other site.
The KHI store has a total gross floor area of 21,800sqm, with about 24 years remaining on the lease.
Courts said in its statement that the property reorganisation was part of an ongoing review of its store network.
Having taken ownership of the KHI building, the company can consider options including downsizing its megastore and repurposing the remaining space for other commercial uses.