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 6 October that it is considering to exercise a put option in relation to the acquisition of Lippo Mall Kemang in South Jakarta.

The REIT is also mulling the option of extending the long stop date of the put option after facing delays in the issuance of the strata title certificates for the property. Lippo Mall Kemang was acquired in December 2014.

LMIRT has attributed the delay to a “significant restructuring” in an Indonesian government agency processing paperwork in relation to the strata title certificates.

“The manager views the delay in the issuance of the strata title certificates as a technical defect and wishes to state, for the avoidance of doubt, that in the meantime, LMIRT continues to control, own and operate Lippo Mall Kemang, which continues to function and generate income for LMIR Trust”, said the REIT’s manager in its announcement.

“Once the manager and the trustee have arrived at a decision in relation to this matter in due course, the manager will issue an announcement to update unitholders”, it added.

Units of LMIRT last changed hands on the Singapore Exchange at SGD0.325.

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.