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

Strategydemonstrated its clear ability to identify and structure a pan-Asian REIT, building a regional portfolio ofgood quality logistics assets and supporting the growth of the REIT through a yield plus growth strategy.As sponsor of MapletreeLog, MIPL is also committed to support the growth of the trust by forging strategicalliances and undertaking development projects to build a strong pipeline of logistics properties forMapletreeLog to purchase on a right of first refusal basis. These development projects include logisticsparks, built-to-suit and ready-built logistics facilities in Singapore, Malaysia as well as in new markets suchas China and Vietnam, to cater to the needs of MapletreeLog’s customers.In addition to the publicly listed MapletreeLog, MIPL also manages a number of private real estate funds,such as:• Mapletree Industrial Fund (“MIF”);• CIMB-Mapletree Real Estate Fund 1; and• Mapletree Real Estate Mezzanine Fund 1.It has the experience, and the necessary real estate and financing skills to structure, originate and managereal estate-related financial products that cater to different pools of investors with different risk appetites.The following provides a brief summary of the private real estate funds managed by MIPL:• Mapletree Industrial FundMapletree sponsored the establishment of MIF with the objective of investing in industrial properties inAsia. It secured Bahrain-based Ahli United Bank’s (“AUB”) Pan Asian Industrial Fund as a cornerstoneinvestor for its first closing of US$310 million in November 2006. AUB’s Pan Asian Industrial Fund hadcommitted an investment amount of US$185 million to the MIF, while Mapletree’s commitment wasUS$125 million.MIF is a seven-year private fund which aims to provide stable recurrent income and strong total returnsto investors. It is managed by Mapletree Industrial Fund Management Pte. Ltd. (“MIFM”), a whollyownedsubsidiary of Mapletree Capital.MIF’s target investments are primarily manufacturing facilities, business parks, industrial parks,research and development facilities, information technology and software parks and industrialoffices. The intent is to tap the shift in production and research and development processes to Asiaby creating a diversified portfolio of good quality industrial real estate assets with stable returns.• CIMB-Mapletree Real Estate Fund 1Mapletree jointly manages CIMB-Mapletree Real Estate Fund 1 (“CMREF 1”), a Malaysia focused realestate fund, through a joint venture with Malaysia’s CIMB. CIMB-Mapletree Real Estate Fund’scommitted capital has almost been fully earmarked for committed projects.With a mandate to make direct investments in properties in Malaysia, including investments indistressed assets, real estate investment products and listed real estate securities, CMREF 1 hascommitted capital of MYR 402 million. With a target gearing ratio of 3:1, the total asset size couldpotentially be about MYR 1.6 billion.As at 31 March 2007, total committed investments was about MYR 700 million. It has acquired officebuildings and a shopping mall in Kuala Lumpur, and formed a joint venture with a listed Malaysiadeveloper, E&O Property Development, and Al Salam Bank Bahrain to develop bungalow lots inPenang. CMREF 1 has also underwritten certain units in a landed residential development in KualaLumpur and invested in real estate investment trusts in Malaysia and the region.• Mapletree Real Estate Mezzanine Fund 1As at 31 March 2007, Mapletree Real Estate Mezzanine Fund 1 (“MREM 1”), an Asia-wide real estatefund that focuses on originating and executing real estate mezzanine loans, had completed anddivested three mezzanine investments aggregating S$51 million.The aggregated realised internal rate of returns for all the investments well surpassed the targetedinternal rate of returns of MREM 1.114