LMIR Trust to acquire Jakarta mall for 3.6 trillion rupiah

LIPPO Malls Indonesia Retail Trust (LMIR Trust) plans to bulk up its portfolio by acquiring a five-storey shopping centre in southern Jakarta, Indonesia, for 3.6 trillion rupiah (S$385.7 million) which it plans to pay with cash and new units.

The acquisition of Lippo Mall Kemang (LMK) from PT Almaron Perkasa - a company incorporated in Indonesia which is 92 per cent indirectly owned by the trust's sponsor PT Lippo Karawaci - could potentially raise the trust's portfolio by 27 per cent from S$1.42 billion as at end-June to S$1.8 billion.

LMIR Trust's manager, LMIRT Management, has proposed to issue up to 301.37 million new units to PT Almaron Perkasa, which under the conditional sale and purchase agreement signed on Sept 14 will receive 3.18 trillion rupiah in cash and 420 billion rupiah in units for LMK.