LMIRT again extends long stop date for Pejaten, Binjai mall divestments

Sharanya Pillai

Published Sun, Jul 19, 2020 · 01:59 PM

THE long stop date for Lippo Malls Indonesia Retail Trust (LMIRT)'s planned divestment of Pejaten Village and Binjai Supermall has been extended to July 23 after discussions with the parties involved, LMIRT's manager announced in a Saturday bourse filing.

In December last year, LMIRT Management entered conditional agreements to divest Pejaten Village in South Jakarta and Binjai Supermall in North Sumatra for 1.28 trillion rupiah (S$1.2 million). The buyer is NWP Retail, a joint venture between Warburg Pincus and PT City Retail Developments.

The sale price for Pejaten Village is 997.4 billion rupiah while that of Binjai Supermall is 283.3 billion rupiah. The two transactions were originally expected to be completed in the second quarter of 2020.

But on June 26, LMIRT Management announced that the parties to the divestment were discussing amendments to the agreements, including a potential lowering of the sale price for both developments.

This was due to "the unforeseeable situation in the past few months arising from the Covid-19 pandemic in Indonesia", the manager said.

The parties had then agreed to extend the long stop date for the agreement to July 10. Subsequently, on July 11, they again agreed to further extend the long stop date to July 17.