Lippo Malls Indonesia Retail Trust agreed to acquire for 3.700 trillion rupiah the Lippo Mall Puri shopping center in the Puri Indah commercial precinct of West Jakarta, Indonesia, from the PT Mandiri Cipta Gemilang subsidiary of its sponsor, PT Lippo Karawaci Tbk.
With a net lettable area of about 115,600 square meters, Lippo Mall Puri includes two eight-story buildings and two lower ground floors. It makes up the retail component of Lippo Karawaci's St Moritz Jakarta Integrated Development and was 89.6%-occupied as of Dec. 31, 2018, to tenants including Adidas, Best Denki, H&M, Marks & Spencer, Uniqlo and Zara.
As part of the agreement, PT Mandiri Cipta will also provide vendor support for the property from the completion of the transaction. The seller's net property income guarantee of 348.0 billion rupiah until December will grow to 356.0 billion rupiah by December 2023, according to a release.
The consideration for the retail property represents a 5.13% discount to the asset's Dec. 31, 2018, value.
The buying Singapore-listed real estate investment trust said the purchase will increase the total value of its assets by 19.0% to 23.214 trillion rupiah and its aggregate net lettable area by 12.69% to 1,026,349 square meters.
As of March 11, US$1 was equivalent to 14,275.00 Indonesian rupiah.