Indonesia: LMIR Trust to acquire Lippo Mall Kuta for $59.8m

Visual from the company website

The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has agreed to purchase 69.59 per cent shares of Lippo Mall Kuta for Rp 800 billion ($59.8 million). The acquisition plan had been approved in an extraordinary general meeting recently.

Lippo Mall Kuta is a three-storey shopping mall in Bali that has been operating since 2013. The mall, which is still under the control of PT Lippo Karawaci Tbk (LPKR), has a gross floor area of 51,595 square meter with net leasable area of 20,405 square meter. It provides a wide range of lifestyle services and products, from fashion, culinary, and entertainment.

Ketut Budi Wijaya, president director of Lippo Karawaci, said that the transaction is part of the company’s light asset strategy.

“The sale is expected to boost our overall performance, revenue and profit, for 2016,” Wijaya said in Jakarta.

At the same time, the transaction will enable LMIR Trust to increase and diversify its portfolio size, as well as optimise its operational costs. Upon completing the acquisition of the retail mall, the size of LMIR Trust’s portfolio is expected to increase by 4.5 per cent, reaching a capitalisation of S$1.9 billion ($1.31 billion).

Based on the pro forma financial statements for the financial year ended December 31 2014, the net property income contribution from LM Kuta would be $7.3 million, representing on a historical pro forma basis a 5.8 per cent increase in LMIR Trust’s net property income for the financial year ended 31 December 2014.

LMIR Trust, which is backed by Lippo Karawaci, currently manages 19 shopping malls and seven retailers. Its total asset value amounted to S$1.8 billion. Lippo Karawaci is Indonesia’s largest listed real estate firm based on total asset and revenue, supported by strong recurring income and extensive land banks.

Also Read:

Indonesia: LMIRT, First REIT team up to acquire two property projects

SG Realty Dealbook:LMIR to acquire Bali mall;Starhill completes sale of Japan property

SG Dealbook: Keppel consolidates Harbourfront holding; LMIR gets $70m loan

Indonesia: LMIRT considers exercising put option for Lippo Mall Kemang in South Jakarta

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.