Indonesia' LMIRT Plans to Acquire Lippo Mall Puri for around US$4.97 B
One Mall own by LIppo Group - Photo by Lippo Karawaci
JAKARTA (TheInsiderStories)PT Lippo Karawaci Tbk (IDX: LPKR) divested its US$19.5 million, hospital and clinic in Myanmar to Singapore’ OUE Lippo Healthcare Ltd., the developer said today (01/11). The healthcare has beenl be taken from another Lippo-owned company, PT Waluya Graha Loka.
The conditional share purchase agreement signed, January 10. Two unit of OUE Lippo, OUELH Healthcare Service Pte. Ltd., and OUELH healthcare Assets Pte. Ltd., will altogether absorb the hospital and clinic shares.
“The transaction aims to increase company’s liquidity,” said Vice President Director of Lippo Karawaci, Hendra Sidin, in a written statement.
Recently, Lippo Karawaci is facing Meikarta project’ problem over bribery issue. Lippo Group’ top official Billy Sindoro is arrested by anti-graft commission last year. In the third quarter of 2018, the property developer’ current assets decreased by 11.87 percent, while the equity was seen eroding by 9 percent to Rp27.14 trillion (US$1.87 billion).
Based on the company’s financial report, Waluya Graha Loka business is trading, development, printing and services. The assets recorded at Rp153.15 billion in the third quarter of 2018.

Last year, OUE Pte. Ltd. has inked a deal for land acquisition in South Jakarta’s central business district. Its subsidiary PT OUE Pengembangan Property will pay Rp1.63 trillion in promissory notes to local property developer Asia Tower Sudirman for some 8,000 square meters of plots zoned for commercial use.

OUE also has signed conditional sales and purchase agreement to take over 60 percent stake in Bowsprit Capital Ltd while other unit OUE Lippo Healthcare (OUELH) will take over the remaining 40 percent stake. Bowsprit is the First REIT manager, that owns 7 percent of the first REIT for total S$99 million.

In addition, Bridgewater International Limited, LPKR’s indirect wholly owned subsidiary also signed Conditional Unit Purchase Agreement with OLH Healthcare Investments Pte. Ltd., OUELH’ indirect wholly owned subsidiary, who will acquire 10.6 percent of first REITs units held by Bridgewater for S$103 million.

Unit of the Lippo group said, following this transaction documents, LPKR’s shareholding in FIRST REITs will be reduced from 28.2 percent to 10.6 percent. Lippo Karawaci will use the proceeds mainly for general corporate purposes.

Furthermore, OUELH will launch a renounceable underwritten rights issue to raise about S$150 million to fund the acquisition, issuing about 2.2 billion new rights shares at S$0.0675 apiece on the basis of one rights share for every one existing ordinary share held by entitled shareholders as at the books closure date.

OUE and Itochu Corporation, which own 64.35 and 25.32 per cent stakes in OUELH respectively, have given irrevocable undertakings to fully subscribe for their entitlements under the rights issue.

OUE is a Singapore-based, diversified property owner, developer and operator with a real estate portfolio spanning across Asia and the United States. OUE is the sponsor of OUE Hospitality Trust and OUE Commercial REIT, established for the purpose of investing in income-producing hospitality and hospitality-related real estate, and commercial assets in financial and business hubs.

OUELH formerly known as International Healthway Corporation Limited is principally involved in development, operation and management of healthcare and related facilities in Japan and China, and seeks to expand its healthcare portfolio to pan-Asia

While, its holding Lippo Karawaci is Indonesia’s property company anchored by a large land bank and solid recurring income base. LPKR’s businesses comprise residential and townships, retail malls, hospitals, hotels and asset management.

LPKR is listed on the Indonesian Stock Exchange with market capitalization of Rp8.35 trillion as at Sept. 14, 2018. The developer builds residential, light industrial, commercial, retail properties throughout Indonesia.

LPKR through its subsidiaries manage and operate hospitals, malls and hotels in major cities in Indonesia and also provides a broad range of infrastructure services to the residents of our developments, and other property management and REIT management services.

Through its two main publicly listed subsidiaries, PT Lippo Cikarang, Tbk (IDX: LPCK”) and PT Gowa Makassar Tourism Development Tbk (IDX: GMTD), of which LPKR owns 54.4 percent and 62.7 percent respectively, LPKR develops and currently operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar.

In addition, LPKR owns 50.98 percent of PT Siloam International Hospitals Tbk (IDX: SILO), the private hospitals network in Indonesia, which currently manages and operates 34 state-of-the-art-hospitals in 25 cities throughout the country, comprising 12 hospitals in Greater Jakarta and 22 hospitals distributed across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara

Lippo Karawaci has established and sponsored two public listed REIT in Singapore, namely First REIT and Lippo Malls Indonesia Retail Trust.

First REIT was listed on the Singapore Exchange Securities Trading Limited on Dec. 11, 2006. Managed by Bowsprit Capital Corporation Limited, First REIT’s portfolio consists of 20 properties located in Indonesia, Singapore and South Korea.

US$1: Rp14,500

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