JAKARTA (TheInsiderStories) - Unit of PT Lippo Karawaci Tbk (IDX: LPKR), PT BowSprit Asset Management offered real estate investment trust (REITs) DIRE Bowsprit Commerical and Infrastructure with indicative target Rp2.45 trillion (US$184.21 million). The REITs has underlying four office building and distribution center in Greater Jakarta, Karawaci and Balaraja, in Tangerang province.
President Director Angli Lim said in public expose of the REITs on Tuesday, the fund would use to acquire five office building in Jakarta and Tangerang areas namely Berita Satu Plaza (Rp393 billion), Life Tower Rp691 billion), Menara Matahari (Rp511 billion), Menara Asia (Rp395 billion) and District Center in Balaraja, Tangerang Rp448 billion). Lim adding, in total the acquisition value of the buildings are Rp2.44 trillion from the fair value Rp2.49 trillion.
He explained more, Bowsprit offered 24.5 billion units and the investors will get dividend yield 8.75 percent per year from listing price. The dividend payment in every three months period.
The effective date of the Bowsprit’s REITS in Jan. 17, bookbuilding Jan. 18 - 28, allotment March 3 and to be listing in Indonesia Stock Exchange in March 8.
Bowsprit plans to list REITS Rp10 trillion in the next five years with underlying asset such as Lippo Kuningan, Menara Matahari Offices and Menara Asia at tangerang with areas 71,000 squaremeters. According to Lim, Bowsprit has released seven limited mutual fund (RDPT) in several city across Indonesia. In total, Bowsprit has manage mutual fund Rp4.8 trillion and become the fourth largest investment fund un the country.
Previously, President Director of Lippo Group James Riyadi has stated, the company eyes to list REITs Rp 100 trillion in three years in order to take benefit from government policies on tax deduction has announced last year. Lippo currently have two portfolio REITS listed in Singapore Stock Exchange (SGX), Lippo Malls Indonesia Retail Trust and First Real Estate Investment Trust with total amount Rp 35 trillion.
Lippo has list first healthcare REITs on Dec 11, 2006 through its unit Lippo Karawaci at SGX with Indonesian assets such as the Siloam Hospitals Lippo Village, Siloam Hospitals Kebon Jeruk, Siloam Hospitals Surabaya, Siloam Hospitals Cikarang, Mochtar Riady Comprehensive Cancer Center, Siloam Hospitals Manado & Aryaduta Hotel Manado, Siloam Hospitals Makassar, Siloam Hospitals TB Simatupang, Siloam Hospitals Bali and Imperial Aryaduta & Country Club in Lippo Village, three Singapore based properties and a hospital in South Korea.
Recently, Mulaiman Hadad, Chairman of Financial Services Agency (OJK), said, has rolled out the new rule for listing REITs in Indonesia. With the amendments in taxation and new listing guidelines, He said, the Indonesia government is looking at developing its REITs market to boost property and infrastructure development in the country.