JAKARTA (TheInsiderStories) - PT Lippo Karawaci Tbk (LPKR) announced the completion of sale of two assets to its sponsored REITs in Singapore. The Lippo Mall Kuta sale to LMIRT was completed on Dec. 29 whilst the sale and leaseback of Siloam Hospital Labuan Bajo was closed on Dec. 30.
With the sale of Lippo Mall Kuta, the company expect will be boosted up revenue by approximately Rp 780 billion and Rp 208 billion in net profit, said the company in a press statement.
Further, with the completion of Lippo Mall Kuta acquisition, LMIR Trust’s portfolio has been enlarged and now comprises 20 high quality retail malls and seven major retail spaces in various locations across Indonesia. The purchase consideration for Siloam Hospitals Labuan Bajo was SG$20 million.
With the completion of this hospitals acquisition, First REIT’s portfolio has been enlarged and now comprises 18 properties located in Indonesia, Singapore and South Korea. Siloam Hospitals Labuan Bajo is currently the only hospital facility in Labuan Bajo and the West Manggarai Regency.
Siloam Hospitals Labuan Bajo is a three storeys hospital with an area of GFA 7.604 sqm and boasts 153 hospital beds. This hospital commenced operations in mid January 2016.
Ketut Budi Wijaya, President Director of LPKR said, the two transactions have once again proved the sustainability of LPKR’s asset light and recycling capital strategies which eventually continue to increase the Company’s cash flow stream and strengthen the Company’s financial position.
Lippo Karawaci has created and sponsored two public listed REIT in Singapore, namely First Real Estate Investment Trust (“First REIT”) and Lippo Malls Indonesia Retail Trust (“LMIR Trust”). LPKR is listed on the Indonesian Stock Exchange with market capitalization of Rp16.6 trillion as per Dec. 30, 2016.
First REIT was listed on the Singapore Exchange Securities Trading Limited on Dec. 11 2006. First REIT is Singapore’s first healthcare real estate investment trust that aims to invest in a diversified portfolio of income producing real estate, real estate related assets in Asia that are primarily used for healthcare related purposes. First REIT is listed on the Singapore Stock Exchange with market capitalization of SG$976 million or US$676 million as per Dec. 30, 2016