LMIRT, First Reit announce mall, retail space closures as Jakarta considers lockdown
Singapore
LIPPO Malls Indonesia Retail Trust (LMIRT) and First Real Estate Investment Trust (First Reit) on Tuesday announced closures of their malls from April 1 to 14.
Their statements come after Indonesia President Joko Widodo said on Monday that regulation is in the works for a lockdown across the country involving closures of non-essential businesses and a movement control order.
LMIRT will close its entire portfolio of 23 malls and seven retail spaces in Indonesia for a minimum of two weeks - longer if the situation worsens.
Essential services at the properties - such as supermarkets, pharmacies and clinics - will remain open with shorter operating hours from 11am to 6pm. Tenants can also choose to continue operations that serve online delivery orders.
The trust's manager said that while it is difficult to ascertain the full financial impact of the crisis as the situation remains uncertain, it is in compliance of its debt obligations and has adequate financial reserves to "fulfil its obligations in the foreseeable future".
LMIRT had previously closed 11 of its malls from March 27 to April 9 as a precaution in light of the coronavirus outbreak.
Meanwhile, the managers of First Reit announced that two of its retail spaces - Lippo Plaza Kupang and Lippo Plaza Buton - will be closed. These are retail spaces that adjoin its hospitals in Kupang and Buton.
Bowsprit Capital Corporation, First Reit's manager, said the closures affect only its retail assets. These "comprise a small portion of assets within First Reit's portfolio, which is predominantly healthcare and/or healthcare related".
It added 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.
Indonesia has 1,414 confirmed Covid-19 cases and 122 deaths, with 75 having recovered.
Units of LMIRT closed down 0.1 Singapore cent or 0.8 per cent at 11.7 cents on Tuesday, after the announcement was released.
Units of First Reit closed down 0.5 Singapore cent or 0.7 per cent at 68 cents, before the announcement was released.
