Stake changes: LMIR Trust stake acquired from Lippo Karawaci subsidiary by Tokyo Century

Lippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR TrustLippo Mall Puri, part of the St Moritz Jakarta Integrated Development located in West Jakarta. Lippo Malls Indonesia Retail Trust, or LMIR Trust, agreed to aquire the mall in March 2019. Credit: LMIR Trust

Bridgewater International Ltd. (BIL), an indirect wholly owned subsidiary of PT Lippo Karawaci Tbk, has sold 874.91 million units of Lippo Malls Indonesia Retail Trust, or an 11.4 percent stake, to Tokyo Century Corp. for S$67.67 million, the trust said in a filing to SGX Thursday.

Tokyo Century is an investment company with nearly US$50 billion in assets, the filing said. ITOCHU Corp., which holds around 30.07 percent of Tokyo Century, is deemed interested in the 11.4 percent LMIR Trust stake, a separate filing to SGX said.

PT Lippo Karawaci, the sponsor of LMIR Trust, will continue to have a controlling 47.29 percent stake in LMIR Trust, equivalent to 3.63 billion units, the filing said. BIL will continue to hold 3.60 billion units, equivalent to a 46.97 percent stake, which PT Lippo Karawaci is deemed interested in, the filing said.

Shareholding details

BIL’s intermediate holding company, PT Trijaya Utama Mandiri, is deemed interested in BIL’s LMIR Trust units, according to an SGX filing. LMIRT Management, the manager of LMIR Trust, holds 24.60 million units of the REIT, the filing said, adding PT Trijaya Utama Mandiri holds 60 percent of PT Inti Anugerah Pratama, or PT IAP, which is the intermediate holding company of the REIT manager, making PT Trijaya Utama Mandiri deemed interested in those units as well.

Due to the stake sale, PT Trijaya Utama Mandiri has an aggregate interest in 3.63 billion units held by LMIRT Management and BIL, the filing said.

As James Tjahaja Riady effectively holds all of PT Trijaya Utama Mandiri, he is deemed interested in those units as well, the filing said.

Dr. Stephen Riady owns all of Sinovex, which is the holding company of Fullerton Capital, which in turn owns 40 percent of PT IAP, the filing said, adding that he also has an aggregate interest in the 3.63 billion units.

In addition, PT Sentra Dwimandiri (SD) and PT Prudential Development (PD) hold 99.99 percent and 0.01 percent, respectively, of Bridgewater International, the filing said.  SD is directly held by PT Lippo Karawaci and PT Maharama Sakti, which is a wholly owned subsidiary of Lippo Karawaci, in a proportion of 100 percent and one share, respectively. PD is directly held by SD and Lippo Karawaci in the proportion of 99.9998 percent and 0.0002 percent, respectively. SD is deemed interested in Bridgewater International’s holding of LMIR Trust.

Impact of pandemic on the retail REIT

LMIR Trust has faced disruptions due to the Covid-19 pandemic.

In October, LMIR Trust had reported its third quarter net property income rose 31.5 percent on-year to S$17.29 million on the newly acquired Lippo Mall Puri.

Lippo Mall Puri’s contribution “was partially offset by the loss of income following the temporary closures of the trust’s assets during the emergency public activity restrictions (PPKM) period in July and August, with affected tenants granted rental waivers while essential service tenants were granted rental discounts to account for the shortened mall operating hours and lower shopper traffic. Additionally, a 40 percent service charge discount was also extended to tenants during the temporary closure period,” the trust said.

The portfolio’s average occupancy rate for the quarter fell to 81.1 percent, compared with 85.5 percent in the year-ago period, and 91.5 percent in 2019, before the Covid-19 pandemic, LMIR Trust said. The decline was mainly due to the early termination of leases of anchor tenants Matahari Department Store and Hypermart, the trust said.

LMIR Trust said mall traffic fell in the third quarter due to Covid-related movement restrictions, but in October, traffic recovered to around 52 percent of pre-Covid levels.