LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Profit forecast and profit projectionRental guaranteeBased onOfferingPriceYieldForecast Period 2007 Projection Year 2008 Projection Year 2009Based onOfferingPriceBased onOfferingPrice(%) (%) (%)No rental guarantee . . . . . . . . . . . . . . . . 6.48 6.55 6.89Base Case ...................... 6.85 7.30 7.84Capital expenditure on the Retail SpacesUnder each of the Master Lease Agreements, the Master Lessee shall be responsible for the maintenanceof the Retail Space in question and all fixtures, fittings and installations therein, including keeping the sameclean and in good and tenantable condition, undertaking works to make good any damage, maintaining themechanical and electrical equipment in accordance with the relevant manufacturers’ guidelines andmaintenance of its own plant and machinery which are required for the operation of its business. TheMaster Lessee shall also be responsible for the land and building tax (including any increases) in respectof the Retail Spaces.The Master Lessee must comply, at its cost and expense, with all laws and regulations and allrequirements of the relevant authorities in force at the moment relating to the Retail Spaces.During the first 30 months of the lease term, the Master Lessee shall at its own cost and expense carry outall repair and replacement works in respect of the mechanical and electrical equipment, whether or notsuch works are of a capital nature. After the first 30 months of the lease term, the relevant landlords will beresponsible for repair and replacement works in relation to the mechanical and electrical equipment whichare of a capital nature. Where any replacement works (after the first 30 months of the lease term) isreasonably required by the Master Lessee in connection with any changes to the layout of the RetailSpaces, the cost of such replacement works shall be deducted from the rent payable by the Master Lesseeto the relevant landlord for the rest of the lease term.The Manager has assumed that no capital expenditure will be incurred for the Retail Spaces for ForecastPeriod 2007 and Projection Year 2008 and Projection Year 2009 (see “Certain Agreements Relating toLMIR Trust and the Properties—Description of the Master Lease Agreements”).Assuming that there is capital expenditure on the Retail Spaces, the impact of variations in the yield is setout below.Capital expenditureBased onOfferingPriceYieldForecast Period 2007 Projection Year 2008 Projection Year 2009Based onOfferingPriceBased onOfferingPrice(%) (%) (%)Borne by LMIR Trust. . . . . . . . . . . . . . . . 6.85 7.30 7.84Base Case ....................... 6.85 7.30 7.84Retail Malls held via BOT SchemesThe relevant Retail Mall Indonesian SPCs will own five of the seven Retail Malls, namely, Cibubur Junction,The Plaza Semanggi, Ekalokasari Plaza, Bandung Indah Plaza and Istana Plaza, via BOT Schemes. Inthe case of Bandung Indah Plaza, the relevant BOT Grantor has granted the BOT Grantee, the owner ofBandung Indah Plaza, the right to apply for HGB titles on top of its HPL titles. Ownership of the HGB titleallows the BOT Grantee to encumber the land with prior consent of the BOT Grantor and subject to theBOT Agreement. (See “Overview of Relevant Laws and Regulations in Indonesia—Rights to Own and/orto Use”.) In the case of the remaining four Retail Malls (i.e. Cibubur Junction, The Plaza Semanggi,Ekalokasari Plaza and Istana Plaza), the BOT Grantee cannot transfer or encumber the land on which therelevant Retail Mall is situated.110