JAKARTA (TheInsiderStories) – Singapore based, LMIR Management Ltd., divested Pejaten Village and Binjai Supermall for Rp1.28 trillion (US$91.42 million) to local company, PT Nirvana Wastu Pratama (NWP Retail), said the company last week. The price higher 33.3 and 19.3 percent respectively to their original acquisition prices
In details, the unit of Lippo Group sold Pejaten Village for Rp997.4 and Rp283.3 billion for Binjai Supermall. The manager of Lippo Malls Indonesia Retail Trust (LMIR Trust) has has entered into conditional sale and purchase agreements with NWP Retail, a joint venture between Warburg Pincus and PT City Retail Developments on Dec. 30.
James Liew, CEO of LMIR Trust said, “This marks our inaugural divestment since the Trust’s listing in 2007 and is also in line with our ongoing portfolio optimisation strategy.”
He adds, the net divestment proceeds of approximately S$120.2 million ($89.03 million) will increase the manager’ financial flexibility to fund growth through reinvestments, make distributions to unit-holders or pare down debt.
“Alongside the proposed Lippo Mall Puri acquisition, we will continue to seek other strategic and opportunistic acquisitions that exhibit attractive growth prospects while concurrently executing asset enhancement initiatives to optimise the value of our portfolio,” said the CEO.
Pejaten Village is a retail shopping mall consisting of six levels (including one basement level) and an underground carpark, with a total gross floor area (GPA) of approximately 91,749 square-meters and a total net leasable area (NLA) of approximately 42,184 square-meters. While, Binjai Supermall located in North Sumatra consisting of three levels and a carpark, with a total GFA of approximately 44,153 square-meters and a total NLA of approximately 23,431 square-meters.
The completion of the two divestments, expected in the second quarter of 2020, he concluded.
LMIR Trust established with the principal investment objective of owning and investing, on a long-term basis, in a diversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/or retail-related purposes. LMIR Trust’s current asset portfolio comprises 23 retail malls and seven retail spaces located within other retail malls.
The properties have a total net areas of 910,749 square-meters and total valuation of Rp19.51 trillion as at Dec. 31, 2018, and are strategically located in major cities of Indonesia with large middle-income population. Currently, LMIR Trust’ portfolio will comprise 28 properties valued at a total of S$1.7 billion.
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