Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang. (Photo: Lippo Malls Indonesia Retail Trust)

Indonesia-focused retail REIT, Lippo Malls Indonesia Retail Trust (LMIRT) (SGX:D5IU), announced on 10 July that it has completed the acquisition of Palembang Icon, a four-storey retail mall

The property, which features a basement level and a sports centre, has a net lettable area of 35,797 square metres. Palembang Icon is located in southern Sumatra. LIRt first announced in June 2015 that it was looking to acquire the property by purchasing all of the shares of PT Griya Inti Sejahtera Insani which owns the building.

Palembang Icon’s acquisition is being financed from internal cash reserves and part of the proceeds raised from the issuance of the SGD75 million 4.10% notes due 2020. The remainder of the acquisition costs will be financed via the issuance of new units in the REIT.

With the completion of the acquisition, LMIRT’s portfolio now stands at 19 retail malls and seven retail spaces located within other malls in Indonesia.

Units of LMIRT last changed hands on the Singapore Exchange at SGD0.35.

Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang.
Lippo Malls Indonesia Retail Trust's property, Lippo Malls Kemang.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.