Magazines Archives - 2008 April

SINGAPORE-BASED real-estate investment trust (REIT) Lippo-Mapletree Indonesia Retail Trust (LMIR Trust) is set to buy upmarket Sun Plaza in Medan, Indonesia, for S$147.4 million (US$106.77 million).

This is the trust’s first acquisition since its initial public offering on the Singapore Stock Exchange last November. The management believes the move “will be accretive to the unit holders”.

Noting that rents at the mall are below market rates, Lippo-Mapletree sees potential for rental growth. It also took into consideration Sun Plaza’s good tenant mix and committed occupancy
of 97%, with Sogo department store and Hypermart as anchor tenants. The one-stop shopping, dining and entertainment destination has 437 tenants with an average lease tenure of 8.9 years.

The six-storey mall, with a net leasable space of 62,583sqm, is also in close proximity to the governor’s office, foreign embassies and major banks.

Lippo-Mapletree aims to own and invest for the long term in Indonesian retail and/or retail-related real estate.

Its REIT has an initial asset portfolio of seven retail malls and seven retail units located within other malls. Three malls are located in Jakarta, two in Greater Jakarta (encapsulated by Jakarta, Bogor,
Depok, Tangerang and Bekasi) and the remaining two in Bandung.