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

Business and propertiesThe largest competing retail malls are:• Mal Taman Anggrek, situated three km to the southwest of Gajah Mada Plaza, which comprisesapproximately 97,000 sq m of retail space including Metro and Galleria department stores and also aHero Supermarket;• Cosmopolitan Mall Pluit, situated six km northwest of Gajah Mada Plaza and anchored by both MatahariDepartment Store and Carrefour hypermarket, is currently undergoing extensive asset enhancementswhich will potentially increase its retail space and improve the positioning of the mall with shoppers in itscatchment areas. The estimated NLA is 88,040 sq m after asset enhancements. As at Listing Date,LMIR Trust has entered into a non-binding memorandum of understanding with PT. Multi PratamaGemilang Perkasa (Pikko Group) to acquire Cosmopolitan Mall Pluit (see “—Potential Acquisition ofProperties from Third Party Vendors”);• Mal Ciputra, situated three km west of Gajah Mada Plaza and anchored by Batik Keris, MatahariDepartment Store and Hero Supermarket, comprises around 51,000 sq m of retail space;• Mega Glodok Kemayoran is situated three km east of Gajah Mada Plaza and anchored by IndonesiaMarine Centre and Home Ciento. The strata mall has a tenancy mix dominated by automotive partsretailers;• Plaza Indonesia is a high-end retail mall targeting the upper income shopper segment and is situatedthree km south of Gajah Mada Plaza. The mall contains 42,000 sq m of mainly high-end retailing,including a Debenham’s department store;• Jakarta City is located three km south of Gajah Mada Plaza and is a strata mall anchored by aHypermart but without a department store; and• Mangga Dua contains a number of retail facilities, predominantly strata malls, and located three kmnorth of Gajah Mada Plaza. The main malls include Mangga Dua Square (60,000 sq m of NLA), WTCMangga Dua (45,000 sq m of NLA), ITC Mangga Dua (44,000 sq m) and Mal Mangga Dua (35,000 sq m).These retail malls target the lower to middle income segment households.Future: The competitive environment of Gajah Mada Plaza’s trade area is expected to intensify over thenext five years, with the planned development of a number of new competing retail malls.There are a number of retail projects currently under construction which will target middle incomehouseholds within Gajah Mada Plaza’s population catchment. These developments include:• Gajah Mada Square, a lease mall with an estimated NLA of 35,000 sq m, which is scheduled to beginoperations in the third quarter of 2007 and is located one km from Gajah Mada Plaza;• Mall of Indonesia, which is scheduled to begin operations in the first quarter of 2008;• Season’s City, a strata mall with an estimated NLA of 40,000 sq m, which is scheduled to beginoperations in 2008, located three km from Gajah Mada Plaza and anchored by Carrefour hypermarket;and• Emporium, a lease mall with an estimated NLA of 63,000 sq m, which is scheduled to begin operationsin the second quarter of 2009 and will be located five km from Gajah Mada Plaza.These new retail malls may potentially reduce the sales growth at Gajah Mada Plaza.(See “Appendix F—Independent Report on the Indonesian Retail Property Market”.)Other informationThe following table sets out other relevant information relating to Gajah Mada Plaza.Year of building completion . . . . . . . . 1982Strata Title Area . . . . . . . . . . . . . . . .GFA as at 30 June 2007 . . . . . . . . . .NLA as at 30 June 2007 . . . . . . . . . .37,501 sq m66,160 sq m34,278 sq m135