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Multipolar Set to Invest $75m For Robbinz Retail Push in China
Francezka Nangoy | February 15, 2011

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Multipolar, the holding company that owns Matahari Putra Prima, will invest as much as $75 million to open new Robbinz stores in China and to bolster existing operations, its managing director said on Monday.

“We will open five to seven new stores in China this year, and it will cost around $50 million to $60 million,” Harijono Suwarno said.

Multipolar acquired Robbinz Department Stores in August, purchasing it through subsidiary Mainvest for 345 million Hong Kong dollars ($44.3 million).

“The prospects in China are very good with its economic growth and per-capita income, and we want to seize it,” Multipolar chief financial officer Reynold Ong said, adding that the department store’s sales are expected to grow by 10 percent to 15 percent this year.

He also said total investment, including operational and capital expenditure, would come to about $75 million, with funds coming from internal cash and bank loans.

Robbinz’s per meter square performance is about $150 to $170 each per month, he said. Robbinz currently has three stores, each of which contains around 50,000 square meters.

Multipolar and the Jakarta Globe are affiliated with the Lippo Group.