SINGAPORE (Yosefardi) – LMIRT Management Ltd.) in its capacity as manager of Lippo Malls Indonesia Retail Trust (LMIR Trust), is proposing to carry out a placement of 117,647,000 New Units to institutional and other investors at an issue price of S$0.34 per New Unit to raise gross proceeds of approximately S$40.0 million.
Approximately 97% of the Gross Proceeds will be used to fund the acquisition of Lippo Mall Kemang in Indonesia.
The Manager, Standard Chartered Securities (Singapore) Pte. Limited (the financial adviser) and BNP Paribas, acting through its Singapore branch, have today entered into a placement agreement in relation to the Placement.
As part of its consistent growth strategy, LMIR Trust has recently secured approval from Unit holders for the acquisition of Lippo Mall Kemang at a purchase consideration of S$385.7 million, which is expected to increase the size of LMIR Trust’s portfolio by approximately 27% to S$1.8 billion.
It is the policy of the Manager to utilize a prudent mix of equity, debt, existing cash and consideration Units to fund LMIR Trust’s acquisitions.
After a recent review of LMIR Trust’s capital structure, the Manager has decided to only raise approximately S$40.0 million under the Placement instead of S$110.0 million which was initially envisaged. The difference in the amount will be covered by additional debt and internal sources of funds.