Issue statistics:

Offer size: 645.469m units (subject to Over-Allotment Option of 58.738m units)
Public Tranche – 20.000m units
Placement Tranche – 625.469m units
Price: S$0.80
NAV per Unit (post-IPO): S$0.91
Forecast Yield: 7.3% (FY08) ; 7.8% (FY09)
Market Cap (post-IPO): S$963.316m
Open: 12 Nov 2007
Close: 15 Nov 2007, 12.00p.m.
Trading: 19 Nov 2007, 2.00p.m. (on “ready” basis)
Lead Manager: UBS, BNP & OCBC

Background

Lippo-Maple Tree Indonesia Retail Trust (LMIR Trust)’r property portfolio comprises seven Retail Malls and seven Retail Spaces, valued at S$1004.7m. As at 30 June 2007, the Retail Malls with a NLA of 219.392 sqm had a weighted average occupancy of approximately 91.6% based on Committed Leases. The Retail Spaces, with total NLA of 94,070 sqm, are master-leased to PT. Matahari Putra Prima Tbk, Indonesia’s largest retailer for an initial term of 10 years with fixed rental growth of 8.0% per annum for the first four years and a revenue sharing formula thereafter.

LMIR Trust’s distribution policy is to distribute 100% of its tax-exempt income and capital receipts from 2007 to 2009, and at least 90% of its tax-exempt income thereafter. Distributions will be paid on a quarterly basis for the three-month periods ending on 31 March, 30 June, 30 September and 31 December each year. The projected DPU for FY08 and FY09 are 5.84 and 6.27 cents respectively.

Lippo launches retail Reit IPO, aims to treble size by end-09

Trust comprises 7 Indonesian malls and 7 retail spaces in other malls

THE Lippo Group aims to triple the portfolio size of its latest real estate investment trust (Reit) to $3 billion by end-2009, the Reit’s manager said yesterday.

The Lippo-Mapletree Indonesia Retail Trust (LMIR Trust), which will be the first Singapore-listed Reit to offer exposure to Indonesia’s retail sector, aims to raise $516.4 million from its initial public offering (IPO).

The trust, which has an initial portfolio of seven Indonesian shopping malls and seven retail spaces in other malls, will sell 645.5 million units at 80 cents each.

The trust had earlier gave an indicative range of 78-91 cents a unit for the IPO.

Of the offer, some 625.5 million units have been placed with institutional and other investors – and is 1.6 times subscribed – while the remaining 20 million are being offered to the public.

‘Investors we met during the roadshows welcome this opportunity to participate in Indonesia’s growing retail sector, given Indonesia’s robust economic fundamentals underpinned by a growing and affluent urban middle-class population of about 66 million consumers,’ said Viven Sitiabudi, chief executive of the Reit’s manager.

PT Lippo Karawaci, Indonesia’s biggest listed real estate developer, will hold 27 per cent of the trust after the unit sale, while Singapore’s Mapletree Investments will own 12 per cent, the trust said.

LMIR Trust is projecting a yield of 6.9 per cent for 2007, 7.3 per cent for 2008 and 7.8 per cent for 2009, it said.

The public offer will close at noon on Nov 15 and trading is expected to start on Nov 19 at 2pm.

The trust is listing at a time when market sentiment is poor.

Japanese trust Saizen Reit tumbled 14 per cent on its debut on Friday, while Japan’s Asia Pacific Land delayed its $514.9 million Singapore IPO last week, citing ‘negative market sentiments’.

But Ms Sitiabudi said that she is confident of LMIR Trust’s quality, even as Lippo’s Indonesian hospital trust First Reit, which was listed last December, fell below its IPO price last week.

‘The market goes up and down, but we’re confident of the quality of our product,’ she said.

Lippo president Stephen Riady, who was speaking to reporters at a news conference to launch the trust, said that the group plans to list two to three Reits – worth some US$3-4 billion in all – in Singapore over the next two to three years.

‘These new Reits would most likely be for hotels, offices and for retail malls outside of Indonesia,’ Mr Riady said.

Lippo to raise up to $587m with retail Reit

INDONESIA’S Lippo Group will be raising up to $587.4 million with the planned Singapore listing of a real estate investment trust (Reit) based on its retail properties in Indonesia.

The Lippo-Mapletree Indonesia Retail Trust (LMIR) will offer 645.5 million units at 78 to 91 cents a unit, according to the trust’s preliminary prospectus which was lodged with the Monetary Authority of Singapore yesterday.

Separate from the offering, Lippo will subscribe for 287.7 million units in the trust while Singapore’s Mapletree Investments will subscribe for 127.3 million units. This means that Lippo and Mapletree will hold stakes of at least 27.1 per cent and 12 per cent in the trust once it is listed.

Of the 645.5 million units that will be part of the share offering, 625.5 million units will be placed out to institutional and other investors, while 20 million units will be offered to the public.

The trust will be the first Reit in Singapore to provide exposure to Indonesia’s growing retail sector.

Two other SGX-listed Reits have significant exposure to overseas retail markets – CapitaRetail China Trust, which owns retail properties in China, and Fortune Real Estate Investment Trust, which holds retail properties in Hong Kong.

LMIR’s initial property portfolio will comprise seven retail mall properties and seven retail spaces located within other retail malls, all of which are located in Indonesia.

Reference : Prelim Prospectus