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

StrategyDate, to the extent that LMIR Trust incurs borrowings in the future, the Manager will employ an appropriatemix of debt and equity in the financing of future acquisitions. The Trustee, as trustee of LMIR Trust, willenter into currency hedging arrangements to optimise risk-adjusted returns to the Unitholders as at ListingDate.Acquisition growth strategyThe Manager will pursue opportunities for asset acquisitions that will provide attractive cash flows andyields relative to LMIR Trust’s weighted average cost of capital, and opportunities for future income andcapital growth. In evaluating future acquisition opportunities, the Manager will seek acquisitions that mayenhance the diversification of the portfolio by geography and tenant profile, and optimise risk-adjustedreturns to the Unitholders. The Manager believes it is well qualified to pursue its acquisition strategy. Themanagement of the Manager has extensive experience and a strong track record in sourcing, acquiringand financing retail and/or retail-related real estate assets locally in Indonesia. The management’sindustry knowledge, relationships and access to market information provide a competitive advantagewith respect to identifying, evaluating and acquiring retail and/or retail-related real estate assets.The Manager’s acquisition growth strategy will be underpinned by:LMIR Trust’s relationship with the SponsorLMIR Trust intends to leverage on the Sponsor’s experience, market reach and network of contacts for itsacquisition strategy to evaluate and execute appropriate acquisitions that are in the interests ofUnitholders and provide potential for income and capital growth. The Sponsor intends to support thegrowth of LMIR Trust’s portfolio in the following ways:• allow the Manager to leverage the Sponsor’s established network of relationships to pursue the growthstrategy of LMIR Trust;• lend its extensive experience and expertise in the retail and property industry to the Manager to assesspotential acquisition opportunities; and• subject to certain conditions, as stipulated in the Right of First Refusal Agreement, facilitate a pipeline ofacquisitions via the ROFR granted by the Sponsor to LMIR Trust over the ROFR Properties (see“Certain Agreements Relating to LMIR Trust and the Properties—Description of the Right of FirstRefusal Agreement”).LMIR Trust’s relationship with the Mapletree GroupThe Manager is 40.0% owned by Mapletree Capital and 60.0% owned by Peninsula Investment Ltd.Peninsula Investment Ltd is in turn 100.0% owned by Jesselton Investment Ltd, a wholly-owned subsidiaryof the Sponsor. Mapletree Capital is a wholly-owned subsidiary of MIPL and is part of the Mapletree Group.MIPL is a leading Asia-focused real estate company based in Singapore. It has an asset base of aboutS$4.5 billion (as at 30 June 2007) comprising office, logistics, industrial and retail/lifestyle properties. Itsbusiness philosophy is to shape new ways of delivering value from real estate and real estate-relatedinvestments to its stakeholders. It aims to be a strategic real estate partner providing real estate solutions,including capital management and quality property-related services and products to its investors, tenants,co-development partners and other business partners. To support its regional business, the group hasestablished an extensive network and presence with ongoing activities in Singapore, China, Hong Kong,Japan, Malaysia and Vietnam.One of the ways that MIPL unlocks value is by developing and rejuvenating large scale mixed-useddevelopments such as the approximately 24-ha HarbourFront Precinct, the centrepiece of which isVivoCity, the largest retail and lifestyle destination in Singapore.MIPL is the sponsor of MapletreeLog, the first Asia-focused logistics real estate investment trust inSingapore. MapletreeLog was listed on the SGX-STon 28 July 2005. It has a principal strategy of investingin a diversified portfolio of income-producing logistics real estate and real estate-related assets across theAsian region. Since its listing, MapletreeLog has grown its portfolio size from the initial 15 logistics assetsin Singapore valued at S$422.0 million to 58 logistics assets in Singapore, Hong Kong, China, Malaysiaand Japan, valued at about S$2.1 billion as at 30 June 2007. MIPL’s success with MapletreeLog has113