Lippo Selling Pejaten Village And Binjai Supermall To NWP Retail

Pejaten Village. (Photo: Lippo Malls)

JAKARTA - LMIRT Management Ltd (LMIRT), manager of Lippo Malls Indonesia Retail Trust (LMIR Trust) and a subsidiary owned by PT Lippo Karawaci Tbk, announced that it has signed a sale and purchase agreement with Nirvana Wastu Pratama (NWP) Retail for the sale of two Lippo malls in Indonesia.

In a written statement received by VOI, Thursday, January 9, it was stated that the two malls in question were Pejaten Village and Binjai Supermall. The total sales value of the two malls is IDR 1.28 trillion. NWP Retail is a joint venture between Warburg Pincus and PT City Retail Developments.

The sale of mall assets is made through REITs (real estate investment trust) or DIRE (real estate investment funds). This was officially informed by the company on the official website of NWP Retail on December 31.

LMIR Trust is the only product of REITs (real estate investment trust) or DIRE (real estate investment funds) owned by Indonesian companies listed on the Singapore Exchange (SGX) since 19 November 2007.

With these REITs, property and real estate companies can sell their assets to the public through this instrument issuance scheme.

Lippo le's strategy changes to active portfolio management, optimizing shareholder value and increasing the valuation of REITs by demonstrating its ability to divest assets with attractive valuations.

This transaction is the initial transaction after the change in LMIRT's strategy towards active portfolio management. In the past, LMIRT used a buy and hold strategy which was a passive portfolio management strategy.

This divestment provides flexibility in terms of liquidity to invest in new assets, return cash to shareholders, or explore other investment opportunities.

The sales price of IDR 997.4 billion for Pejaten Village and IDR 283.3 billion for Binjai Supermall were 33.3 percent and 19.3 percent respectively higher than the initial acquisition price of IDR 748.0 billion and IDR 237.5 billion at the time of acquisition. in 2012.

This value is also a discount of 4.1 percent and 8.3 percent, respectively, from the mall's latest valuation of IDR1.04 trillion and IDR309.0 billion, respectively.

John Riady, CEO of Lippo Karawaci, said that retail malls will continue to be a core part of his business. "We will continue to manage assets proactively to increase valuation, identify investment opportunities, and optimize shareholder value," said James.