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Lippo Karawaci acquires interests in LMIRT and trust manager from Mapletree and Lippo for S$197.4 million

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:

• Press Release
• Announcement

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.

Analysts' views on hefty dividend payouts - Channel NewsAsia

Analysts' views on hefty dividend payouts - Channel NewsAsia

A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia

A-REIT submits S$110m bid for business park site at Fusionopolis - Channel NewsAsia

SINGAPORE : Mainboard-listed Ascendas REIT (A-REIT) has submitted a S$110 million bid for a business park site at Fusionopolis.

A-REIT said this property, together with its existing properties within the one-north region and the neighbouring Science Park I and II, will enhance its market leadership position in the Business & Science Parks segment.

The trust is planning to develop the business park site into a modern suburban business facility, comprising 60 per cent business park space and 40 per cent office space.

It also hopes to attract tenants in the Infocomm Technology and media industries, as well as R&D activities in Physical Science and Engineering.

A-REIT said the total development cost of the property is not expected to exceed 3.3 per cent of A-REIT's deposited property as at 31 March 2011.

The 6,253 square metre site, with a 60-year land lease tenure and an allowable plot ratio of 4.0 times, is located in the one-north master plan region.

The tender for the site was launched under the Government Industrial Land Sales Programme by the Jurong Town Corporation.

Saizen Reit Q1 2011 Quarterly Earnings Report

Saizen Reit Q1 2011 Quarterly Earnings Report:

• Financial Statements

Key Points

• Revenue and income decreased year-on-year and quarter-on-quarter for the third quarter ended 31 March 2011 (“3Q FY2011”), due mainly to the sale of 18 properties between September 2010 and March 2011, of which six properties were sold in 3Q FY2011.
• The average occupancy rate was 91.0% in 3Q FY2011, as compared to 91.8% in the third quarter ended 31 March 2010 (“3Q FY2010”) and 90.8% in the previous quarter ended 31 December 2010 (“2Q FY2011”). Overall rental reversion of new contracts entered into in 3Q FY2011 was marginally lower by about 3.6% (3Q FY2010 and 2Q FY2011: lower by about 4.7% and 3.2% respectively) from previous contracted rates.
• Loan of YK Shintoku to be fully repaid by end of May 2011. YK Shintoku and YK Shingen divested three properties each in 3Q FY2011, at a weighted average discount of about 2% to valuation. In aggregate, these six properties contributed a gross revenue of JPY 28.0 million (S$0.4 million), or 2.9% of the Group’s total revenue, in 3Q FY2011. Partial loan repayment using sale proceeds as well as principal repayments made from YK Shintoku’s operations cash flow in 3Q FY2011 had reduced the loan balance of YK Shintoku to JPY 4.8 billion (S$73.1 million) as at the end of March 2011. YK Shintoku has commenced a repayment planwhich will enable its loan to be fully repaid by the end of May 2011.
• NAV per unit of $0.34 as at 31 Mar 2011.

Author's Note
There is no distribution this quarter as the Reit adopts a semi-annual distribution policy. The next distribution payment is expected to take place in September 2011 in respect of distributable cash accumulated in the six months financial period ending 30 June 2011.


The previous distribution was 0.52 cents per Unit, paid on 8 March 2011.

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Plife Updated Target Price following Q1 2011 result release

Plife Updated Target Price following Q1 2011 result release:

Brokerage	Recommendation	Target Price (S$)	Date
DMG	NEUTRAL	1.83	06/05/11
DBS Vickers	BUY	1.95	05/05/11
CIMB	OUTPERFORM	1.98	05/05/11

 

Latest updates at Stock Target Price.

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