(Bloomberg) ? Jardine Cycle & Carriage Ltd., which distributes DaimlerChrysler AG's Mercedes Benz in Singapore, said second-quarter profit rose 52 percent, boosted by earnings from its Indonesian unit and improved demand in the city-state.

Net income for the three months ended June 30 rose to $88 million, or 27.64 cents a share, from $57.9 million, or 20.91 cents. Sales fell 21 percent to $290.3 million from $366.5 million because of its exit from most businesses in Australia and New Zealand.

"The group's good trading performance is expected to continue for the remainder of the year, although growth will be at a slower pace than in the first half," chairman Anthony Nightingale said in a statement.

Jardine Cycle & Carriage may increase its 42 percent stake in Jakarta-based PT Astra International, Indonesia's largest auto distributor, "if the price is right," said Philip Eng, the Singapore company's managing director. Astra last month said second-quarter profit rose 43 percent, as lower interest rates and faster economic growth led more Indonesians to buy vehicles.

Indonesia's motor vehicle market grew by 30 percent and the motorcycle market by 48 percent in the first half of the year, helped by peaceful elections and low interest rates, the company said.

First-half sales from Jardine Cycle & Carriage Australia slumped 96 percent to $9.7 million from $232.1 million a year earlier, after the group exited some businesses.

Jardine Cycle & Carriage said its property unit, MCL Land Ltd., is selling a downtown office building that houses its headquarters for S$151 million ($88 million).

The Singapore-based developer said it's selling the building to Ferrell Realty Pte after writing down its value by $19.4 million. That led to a 91 percent drop in first-half profit to $1.2 million from a restated $14 million, MCL Land said in a statement to the Singapore stock exchange.

MCL Land said it's counting on the funds from the sale to buy land for more property in Singapore and in Asia. Developers have said home sales in the region offer a return that's four times more than Singapore office rents. MCL Land earned $2 million from the property in the first half, it said.

Jardine Cycle & Carriage said Singapore's passenger car market had grown 25 percent in the first half of 2004. Its share of passenger car sales slipped to 12 percent from 14 percent a year earlier. The company earned $19.1 million profit from its Singapore motor unit in the first half, up 12 percent.

Jardine Cycle & Carriage will remain the exclusive retailer for Mercedes Benz cars in Singapore until at least the end of 2010. The agreement with DaimlerChrysler will continue indefinitely after 2010 unless cancelled by the companies, the company said last month.