Lippo Karawaci acquires interests in LMIRT and trust manager from Mapletree and Lippo for S$197.4 million - S$2.4 billion of mall assets to be injected into LMIRT over next three years:
Key Points
- PT Lippo Karawaci Tbk. ("LPKR"), Indonesia's largest listed property company by total assets, revenues and net profit, will emerge as the largest shareholder of Lippo-Mapletree Indonesia Retail Trust (“LMIRT”) and 100% shareholder of the LMIRT Mgt, following a series of transactions totalling S$197.4 million (equivalent to US$165.5 million).
- LPKR, through its wholly-owned subsidiaries, had signed definitive agreements to purchase 97,853,918 units (approximately 9.02%) in LMIRT and 40.0% in Lippo-Mapletree Indonesia Retail Trust Management Limited (“LMIRT Mgt”) from the Mapletree Group entities (“Mapletree”). The purchase agreement for the 9.02% was signed by LPKR subsidiary, Bridgewater International Ltd (“BIL”). It had also contracted to buy over a further 18.22% interest in LMIRT, which is currently held through an affiliate of LPKR.
- It had also contracted to buy over a further 18.22% interest in LMIRT, which is currently held through an affiliate of LPKR.
- At S$0.56 per Unit, representing a 2.7% premium to the May 20, 2011 closing price of S$0.545 per Unit, the acquisitions for LMIRT add up to S$165.5 million.
- In a parallel transaction, another LKPR subsidiary, Peninsula Investment Limited (“PIL”) will be acquiring from Mapletree the remaining 40% interest in LMIRT Mgt for a cash consideration of S$31.9 million. Concurrent completion for these transactions is anticipated and expected in the next 21 business days.
- After the conclusion of these transactions, LPKR will effectively own 29.5% interest in LMIRT and 100% of LMIRT Mgt and become LMIRT’s largest shareholder, as well as full ownership in LMIRT Mgt. These transactions will position LPKR as the largest mall owner/manager in Indonesia and among the largest in Southeast Asia.
- LKPR plans to carry through its plan to inject S$2.4 billion of mall assets into LMIRT over the next three years.
- This acquisition will put LMIRT and LMIRT Mgt fully aligned with LPKR’s Lippo Malls Group, and provide LMIRT with a strong pipeline and the opportunity to grow its asset base to S$4 billion in the next 3 years.
About PT Lippo Karawaci Tbk (“LPKR”) (www.lippokarawaci.co.id)Lippo Karawaci is the largest listed property company in Indonesia by market capitalisation, assets, revenue and net profit, anchored by a large land bank and solid recurring income. It has a highly focused, unique and integrated business model with four core pillars of growth - Residential/Township, Retail Malls, Hospitals, Hotels and Asset Management.
LPKR was initially founded on a vision to impact lives through the development of well-planned sustainable independent townships with green environments and first class physical and social infrastructure. Over more than a decade, LPKR has proven itself as a highly trusted property developer with the most recognisable brand name and owner of the largest diversified landbank and pioneering projects in strategic locations throughout Indonesia.
Through a merger of eight property related companies in 2004, LPKR has expanded its business portfolio to encompass urban development, large scale integrated development, retail malls, healthcare, hotel and leisure, as well as fee-
based income portfolio. Its premier private hospital group is the only one achieving world class standards.
LPKR is listed on the Indonesian Stock Exchange with a market capitalisation of
Rp16.65 trillion or US$1.95 billion.
Author's Note
The above transactions bring to an end the joint venture between MapleTree and Lippo Group in the management of Lippo Maple Retail Trust. The retail property sector in Indonesia is not a key focus market for Mapletree, and it will focus its resources to grow its key markets in Singapore, China, Japan, India and Vietnam.