LMIRT manager denies request to postpone voting for acquisition of Lippo Mall Puri

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THE manager of Lippo Malls Indonesia Retail Trust (LMIRT) will not be tabling an additional resolution at its extraordinary general meeting (EGM) on postponing voting for the proposed acquisition of Lippo Mall Puri, it said in an exchange filing on Monday. Read more at The Business Times.

The unitholders had said that there appears to be many factual errors in documentation, and that the present tenant occupancy rate in Lippo Mall Puri is less than claimed.

The unitholders also said that in view of the Covid-19 pandemic, assumptions in the valuation approach did not seem justified. They added that there are no transactions by unrelated parties for Jakarta malls in the time of the pandemic, and"there appears to be offers by malls by Lippo competitors at offers of a much lower price".

The manager noted that the impact of Covid-19 on the mall has been taken into account in the independent valuations by Cushman & Wakefield and Colliers. It said the property's 12.6 per cent decrease in valuation from Dec 31 2019 to June 30 this year is in line with a decline in valuations of similar properties in its portfolio.

"The manager is of the view that the purchase consideration is at a reasonable and attractive price and there is no merit to the requisitionists' argument to table their own property valuation," it said.

 

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