Mainboard-listed Courts Asia, which retails furniture and IT products, has entered into a memorandum of understanding with Sinar Mas Land to build its first two Big-Box megastores in Indonesia.
Under the agreement, Courts Asia will lease the two megastores at Bekasi, located in the biggest development area of Kota Harapan Indah and at Serpong, located in the BSD City Township.
These stores will be built by Sinar Mas Land and leased back to Courts Asia under the "build-to-suit" concept, for 28 and 30 years respectively.
The agreement also forms the framework for Courts Asia to partner Sinar Mas Land to build additional stores in the future on the same terms, when suitable sites are identified.
Sinar Mas Land would play a strategic role in sourcing for and identifying these sites for Courts Asia's future expansion in Indonesia.
For such future projects, Sinar Mas Land would develop and build the facilities on these sites at its own costs, and lease them to Courts Asia upon completion.
Sinar Mas Land is a leading property developer in Indonesia and is engaged in the property development and leasing of townships, residential, commercial and industrial properties.
It has more than 10,000 ha of land bank, 40 years of experience in property development and more than 50 major projects that have been developed in Indonesia.