LMIRT proposes S$280m rights issue to fund acquisition of Jakarta mall

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THE manager of Lippo Malls Indonesia Retail Trust (LMIRT) on Friday proposed to raise S$280 million through a non-underwritten renounceable rights issue to partly finance its planned acquisition of Lippo Mall Puri. Read more at The Business Times.

Should Lippo Karawaci be allocated 72.5 per cent or more of the excess rights, LMIRT will effectively become a subsidiary of the sponsor.

The rest of the acquisition cost will be paid through debt financing of up to S$120 million, comprising bank debt and a S$40 million loan facility from Mandiri Cipta Gemilang, the manager earlier said.It added that the short-term impact of the Covid-19 pandemic presents an opportunity to acquire a quality asset with long-term capital appreciation potential, at a substantially reduced price.

The manager said it believes the mall will continue to maintain occupancy levels and attract new tenants as businesses gradually recover, and expects rental rates to show stable or moderate growth from late 2021. LMIRT units were trading at 11 Singapore cents as at 9.45am on Monday, down 0.4 cent or 3.5 per cent.For daily updates on weekdays and specially selected content for the weekend. Subscribe to

 

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