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

The Sponsorshopping, entertainment and recreation (with a five-star hotel, a resort and a 67-ha golf course). Notableestablishments within the Lippo Karawaci urban development include Siloam Hospitals Lippo Karawaci,the Pelita Harapan University and an internationally accredited English language educational institutionoffering preschool through secondary school facilities. More than 108 km of roads were built by theSponsor within the development.The Sponsor has developed and operated urban developments at Lippo Cikarang located in the east ofJakarta and Tanjung Bunga in Makassar, respectively. Lippo Cikarang was launched in 1993 and TanjungBunga in 1996. The Sponsor also developed the Royal Serpong Village, a gated micro-suburb at Serponglocated to the west of Jakarta, which includes a secure and exclusive 150-home residential development.In 2002, the Sponsor launched its first retail strata-titled project, Mall WTC Matahari, a retail shopping malllocated in Greater Jakarta. Since that time, it has developed the retail and commercial properties ofMetropolis Town Square in Modernland, Greater Jakarta; Depok Town Square in Depok, Greater Jakarta;Malang Town Square in Malang, East Java; GTC Makassar in Makassar, South Sulawesi and MedanGrand Palladium Medan in Medan, North Sumatra.As at 31 December 2006, the Sponsor has approximately 2,046 ha of land available for future townshipdevelopment, in addition to land banks for future commercial retail development, which is among thelargest landbanks among all Indonesian property companies. This is anticipated to be sufficient for theSponsor’s planned development projects for the next 15 to 20 years. The significant size of its landbankprovides the Sponsor with the flexibility to develop or divest areas of land to take advantage of cyclicalproperty market conditions and reduces its exposure to the complexities of land acquisitions in Indonesia.The Sponsor has formulated the following strategies for its property business, especially its retail propertybusiness:• Expansion of portfolios in strategic locations. For the past three years, the Sponsor has acquired keysites in strategic locations to build retail malls and other mixed use developments such as residentialtowers, hospitals and hotels. These developments include Puri Paragon in West Jakarta, KemangVillage in South Jakarta and Kuta Beach Mall in Bali. The Sponsor will continue to seek opportunities toacquire new sites for future developments.• Continuing strong relations with business partners. The Sponsor has established and continues tomaintain strong relations with its network of business partners and other business groups and hasgained their trust and confidence.• Experienced key personnel. The Sponsor has strong industry experience and established trackrecord. Its management team, through a combination of local knowledge and global experience, willcontinue to strive towards international best practice by attracting and developing its key people.• Asset enhancement. The Sponsor has planned ongoing asset enhancements on the malls which itowns and/or manages. This includes the constant upkeep and improvement of all Retail Malls. TheSponsor is aware of the need to continuously monitor and improve retail properties in a dynamic globalenvironment.• Leverage its broad based property development experience and platform. The Sponsor will leverageits wide ranging property development capabilities and platform to consistently source for new retaildevelopments and third party acquisition opportunities.• Tenant relationship. The Sponsor values its tenants as key stakeholders in the growth and success ofitself, its subsidiaries, their business associates and controlled affiliates. It has established and willcontinue to build greater relationships to drive both the Sponsor’s as well as LMIR Trust’s success.(See “Business and Properties—Acquisition Pipeline”.)211