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LMIRT further extends long stop date for divestment of two Indonesia malls

THE manager of Lippo Malls Indonesia Retail Trust (LMIRT) has announced a further extension to the long stop date for the proposed divestment of two Indonesia properties to July 17, 2020.

This was announced in a regulatory filing to the Singapore Exchange over the weekend.

Last December, LMIRT Management said that it had inked conditional agreements to divest Pejaten Village and Binjai Supermall for 1.28 trillion rupiah (S$123.1 million).  The buyer is NWP Retail, a joint venture between Warburg Pincus and PT City Retail Developments. 

The sale price for Pejaten Village in South Jakarta is 997.4 billion rupiah while that for Binjai Supermall in North Sumatra is 283.3 billion rupiah. Completion of the two transactions was expected to take place in second quarter of 2020.

However, late last month, LMIRT Management said that considering the unforeseeable situation in the past few months arising from the Covid-19 pandemic in Indonesia, the parties to the two transactions are "in the process of discussing certain required amendments" to the conditional sale and purchase agreements prior to completion, "including a potential downward adjustment" to the respective sale prices of the two malls. Hence, the parties  agreed to extend the long stop date for the completion of the proposed divestments to July 10, 2020.

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