Release 85 Percent Shares of Central Park Mall, Agung Podomoro Owned by Conglomerate Trihatma Haliman Turns Funds to Pay Debts and Investments

JAKARTA - Property company Trihatma Haliman conglomerate PT Agung Podomoro Land Tbk (APLN) has released 85 percent of its ownership in Central Park Mall (CP Mall), Jakarta to PT CPM Assets Indonesia. This transaction was carried out after PT CPM Assets Indonesia was acquired by a Japanese company, namely Hankyu Hanshin Properties Corp. through its subsidiary, CPM Assets Japan LLC.

The proceeds from the CP Mall divestment will be used by the company to pay off part of the loan, invest in PT CPM Assets Indonesia, and strengthen APLN's liquidity.

“As a property company, we strive to always optimize every business opportunity, including in this CP Mall divestment. We are optimistic that the various strategic steps taken by the Company will further strengthen performance and support sustainable business growth in the long term", said President Director Agung Podomoro Bacelius Ruru, in an official statement, Tuesday, October 18.

Bacelius said, as part of the CP Mall divestment transaction, APLN also accelerated the repayment of the Guthrie Venture Pte loan. Ltd. which matures on November 20, 2022. As a form of business partnership with Hankyu Hanshin Properties Corp., the Company also reinvested the proceeds from the CP Mall divestment in PT CPM Assets Indonesia so that it has a 28.58 percent stake in PT CPM Assets Indonesia.

"The divestment of CP Mall will strengthen the Company's liquidity so that the execution of the development plans for our property projects will be more solid. More importantly, the repayment of Guthrie's loan can also improve cost efficiency and better profitability of the Company in the future", said Bacelius.

CP Mall, which started operating on September 9, 2009, has a total area that can be rented out of more than 128 thousand M2, and in August 2022 the occupancy rate reaches almost 95 percent. This shopping center is located in the Podomoro City area, Jakarta, which is equipped with apartments, hotels, and office space. The inhabitants of the Podomoro City area reach more than 20 thousand people.

This transaction is not a transaction that contains elements of an affiliate transaction. This transaction is material but is a business activity carried out by the Company to generate operating income and is carried out routinely, repeatedly, and/or continuously considering that the Company is engaged in the Real Estate sector.