Lippo Mall Puri Officially For Sale IDR 3.5 Trillion, Buying Lippo Karawaci

Lippo Mall Puri. (Photo: Doc. Lippo Mall)

JAKARTA - The property company, PT Lippo Karawaci Tbk, today, Tuesday, December 15 announced that the majority of Unitholders Lippo Malls Indonesia Retail Trust (LMIR Trust) has supported the acquisition of Lippo Mall Puri through a transaction worth IDR 3.5 trillion.

Vice President, Head of Corporate Communication of Lippo Karawaci, Danang Kemayan Jati, said that this was an important achievement for issuers coded LPKR and LMIRT, in which LPKR has 32 percent ownership.

"The cash funds obtained by Lippo Karawaci from this transaction will give the company additional financial flexibility in achieving its growth projections," said Danang, quoted from Lippo Karawaci's disclosure of information on the Indonesia Stock Exchange (IDX) website.

Danang explained, the next step to complete the sale to LMIRT is the settlement of Rights Issue by LMIRT in the next few weeks. This Rights Issue has also been approved by LMIRT Unitholders.

"Funds from Rights Issue coupled with funds that have been obtained from bank loans and vendor funding will ensure the availability of funds for this acquisition. LPKR will remain a standby buyer of Rights Issue and is interested in increasing its ownership in REIT to support this transaction if needed, "he explained.

The new LPKR management team, said Danang, continues to achieve new achievements that have been set as part of the company's transformation agenda. The sale of Lippo Mall Puri is a key initiative of the new management team that will generate revenue of IDR 3.5 trillion from the sales and help contribute to funding the completion of ongoing projects and the launch of future affordable landed housing developments.

"Among the key initiatives that have been taken by the Management Team in less than two years are the completion of almost all past projects, improvement of the financial balance through Rights Issue and bonds refinancing, and strengthening of management and governance functions," said Danang.

In addition, he continued, the property business has started to recover with sales increasing, namely more than IDR 2.5 trillion in 2020, and with a target of IDR 3.5 trillion in 2021.