PT Lippo Karawaci Tbk (IDX: LPKR) has prepared funds of Rp2.12 trillion (US$148.25 million) for expansion in this year, obtained from the last year' rights issue proceed - Photo by the Company

JAKARTA (TheInsiderStories) – Property issuer, PT Lippo Karawaci Tbk (IDX: LPKR) has prepared funds of Rp2.12 trillion (US$148.25 million) for expansion in this year, obtained from the last year’ rights issue proceed. This was conveyed by the company’ CEO, John Riady, after the shareholders meeting in Tangerang, today.

“As reported, the company raised Rp11.24 trillion from a rights issue in 2019,” he said in a disclosure to the Indonesia Stock Exchange on Monday (07/20) by adding that shareholders agreed not to distribute dividends for 2019.

Part of the proceeds, he continued, has been used to pay off the Lippo Karawaci‘ obligations, including interest, rental fees, hedging costs, and participation in buying equity at the subsidiary. Until the end of 2019, the developer has used the proceeds to repay corporate principal bonds Rp9.12 trillion, pay off bank loans of Rp2.65 trillion, and repaid of corporate obligations including interest, rent and hedging fees of Rp2.35 trillion.

The company also injected fund to its subsidiaries worth of Rp2.68 trillion for PT Prima Aman Sarana, PT Satyagraha Dinamika Unggul, PT Bahtera Perkasa Makmur, and PT Tribuana Jaya Raya for the construction of the Millennium Village, Kemang Office, Holland Village Jakarta, Monaco Bay, St. Moritz Makassar and settlement of obligations. Then, funding the core projects amounted to Rp678 billion and working capital Rp767 billion.

Lippo Karawaci is an integrated real estate company in Indonesia with total assets of $3.8 billion as of March 31, 2020. The bulider’ core business consists of housing development in urban areas, malls and health services. The company is also actively involved in integrated development, hospitality, urban development and management, and asset management services.

Present in 40 cities, the company is a property developer with 1,411 hectares of landbank through two units, PT Lippo Cikarang Tbk (IDX: LPCK) and PT Gowa Makassar Tourism Development Tbk (IDX: GOWA), with ownership 84.0 percent and 62.7 percent. The subsidiaries develops and operates Lippo Cikarang in Bekasi, West Java and Tanjung Bunga in Makassar, South Sulawesi.

In addition, the company also has a 55.4 percent stake in PT Siloam International Hospitals Tbk (IDX: SILO), a network of leading private hospitals in Indonesia, with 37 hospitals in 24 cities throughout Indonesia. Plus, a unit on the real estate investment trust listed on the Singapore stock exchange, namely Lippo Malls Indonesia Retail Trust with assets managed by $1.3 billion in the first quarter of 2020.

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