First Reit extends closure of two malls in Indonesia amid virus outbreak

First Reit is keeping two of its malls in Indonesia closed for another two weeks - till April 28 - as the country looks to curb movement further amid surging Covid-19 cases. 

The two malls - Lippo Plaza Kupang and Lippo Plaza Buton - were initially to have been closed only from April 1 to April 14, although certain essential services such as supermarkets, pharmacies and clinics have stayed open.

This comes as the number of confirmed Covid-19 cases in Indonesia surpassed 4,000 over the weekend and now stands at about 4,200, going by figures compiled by Johns Hopkins University. 

Large-scale social distancing measures kicked in last Friday in Jakarta, with new rules including the limiting of gatherings to five people, restricting of restaurants to online delivery orders and scaling back public-transport services.

Over the weekend, the Indonesian government also imposed curbs on public transport in anticipation of celebrations that close the Muslim fasting month of Ramadan, which ends on May 23. 

Bowsprit Capital Corporation, First Reit's manager, said on Monday that the malls' temporary closures may be extended beyond April 28, "depending on measures taken by the local authorities and the situation with the spread of Covid-19 in Indonesia". 

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First Reit's manager reiterated that its retail assets comprise "a small portion" of assets within First Reit's portfolio, which is predominantly healthcare or healthcare-related.

It also said again that the full financial impact of the Covid-19 outbreak is difficult to determine, but that the Reit remains in compliance of its debt financial covenants and has adequate reserves to fulfil its obligations in the foreseeable future.

Units of First Reit closed down 0.67 per cent at S$0.74, before the announcement.