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

Business and propertiesASSET ENHANCEMENTThe Manager will continually review and investigate asset enhancement works for each Property. The aimof this is to create further income streams and maximise retail offering at each mall. To do this, theManager intends to work with relevant Indonesian authorities to gain the necessary approvals. The tablebelow gives a summary of potential and completed asset enhancement works.PropertyGajah Mada Plaza . . . . . . . .Cibubur Junction . . . . . . . . . .The Plaza Semanggi. . . . . . .Mal Lippo Cikarang . . . . . . . .Ekalokasari Plaza . . . . . . . . .Bandung Indah Plaza . . . . . .Istana Plaza . . . . . . . . . . . . .Key asset enhancement plans• Potential improvements to the façade, main lobby, atrium and furtherenhancement of the tenancy mix will be investigated.• Expansion of Matahari Department Store at the third level has beenrecently completed.• Relocation of the food court from the upper level to the basement.• Development of “Plangi on the Sky”, a rooftop open air cafe, addingapproximately 3,000 sq m to the NLA.• Expansion of NLA by 10,694 sq m from construction of an extensionannex has been recently completed.• As at 30 June 2007, 8,539 sq m or approximately 79.8% of theadditional NLA created from asset enhancement has been precommittedto Hypermart.• Reconfiguration of the Matahari Department Store.• Addition of a third floor with NLA of approximately 3,263 sq m and amezzanine with NLA of approximately 1,750 sq m has been recentlycompleted. The additional NLA will be occupied by a food court,proposed fitness centre and potentially, a cinema which, together,anchor the top levels of the centre, which is expected to enhanceshopper traffic on the higher floors of the mall and average grossrentals for the entire mall.• As at 30 June 2007, 670 sq m or approximately 13.4% of the additionalNLA created from the asset enhancement works has been precommitted.• An additional NLA of approximately 3,843 sq m has been recentlycompleted.• Investigate converting ice skating rink to retail.Each of Bandung Indah Plaza, Mal Lippo Cikarang and Ekalokasari Plaza has either obtained, or is in theprocess of obtaining, final local government approval for the recently completed asset enhancementworks which have created additional NLA.INSURANCEThe Properties are insured consistent with industry practice in Indonesia. This includes property damage,public liability insurance (including personal injury) policies, earthquakes, terrorism and sabotage. Thereare no significant or unusual excess or deductible amounts required under such policies. There are,however, certain types of risks that are not covered by such insurance policies, including acts of war andoutbreaks of contagious diseases.LEGAL PROCEEDINGSNone of LMIR Trust, the Manager and the Master Lessee is currently involved in any material litigation nor,to the best of the Manager’s knowledge, is any material litigation currently contemplated or threatenedagainst LMIR Trust, the Manager and the Master Lessee.ENCUMBRANCESAs at the Listing Date, there are no encumbrances which are outstanding with regard to any of theProperties.126