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

The SponsorIn July 2004, the Sponsor was formed from a merger of eight property-related companies. The Sponsor isan internationally recognised corporation and is also the largest listed property company in Indonesia,based on its market capitalisation on the JSX of Rp. 10,609.2 billion (approximately S$1.8 billion) based onthe closing price of Rp. 1,790.0 on the JSX as at 18 October 2007. The Sponsor develops residential,commercial and retail properties, and light industrial areas throughout Indonesia, with the majority of itscurrent developments based in and around Greater Jakarta.The Sponsor’s property portfolio comprises townships and residential developments, commercial andretail development projects, healthcare, hospitality and infrastructure. It has three townships and oneresidential cluster as well as eight developed commercial and retail centres. It manages four hospitals, oneof which it owns. In addition, it owns three hotels, two of which it also manages.The merger strengthened recurring cash flows, achieved economies of scale and reduced exposure tobusiness cycles. As a result of the merger, all assets and liabilities of the merged companies became theSponsor’s assets and liabilities. The effect of the merger was to expand the Housing and LandDevelopment business segment as well as to increase the Sponsor’s market capitalisation. Since themerger, the Sponsor has established itself as the largest property developer in Indonesia with a strongrecurring income base.The Sponsor is listed on the JSX and the SSX in Indonesia. It is also included in the LQ 45 Index, which is acapitalisation-weighted index of the 45 most heavily traded stocks on the JSX.In November 2005, Euromoney conferred two awards on the Sponsor, naming it the “Best PropertyDeveloper in Indonesia” as well as placing it among the top 10 property developers in the Asia-Pacificregion. Subsequently in July 2006, the Sponsor received, from Businessweek Magazine, the “Indonesia’sMost Admired Company (IMAC) 2006” award in the category of property developers. The methodologiesapplied by Euromoney on the rating survey were (i) creativity of the developer in composing product andability to create investment opportunities, (ii) quality of the products, and (iii) financial ability. Inputs fromcommercial banks, investment banks and real estate advisers were taken into consideration whendetermining the award recipient.The Sponsor is staffed by experienced professionals, all of whom have in-depth property managementand operating experience.208