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

Certain agreements relating to LMIR Trust and the PropertiesThe titanium façade of Sun Plaza resembles a sculpture and offers visitors an experience of luxury andelegance.On 26 June 2007, the Manager entered into a non-binding memorandum of understanding withPT. Pakuwon Permai in respect of the potential acquisition by LMIR Trust of Supermal Pakuwon Indahand Pakuwon Trade Center, a retail mall located in West Surabaya, East Java.The details of Supermal Pakuwon Indah and Pakuwon Trade Center are set out below:Supermal Pakuwon Indah and Pakuwon Trade CenterWest Surabaya, East JavaEstimatedGFA ..........................EstimatedNLA ..........................Target segment . . . . . . . . . . . . . . . . . . . . . . . . . .District/Area. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Estimated acquisition price . . . . . . . . . . . . . . . . .289,563 sq m114,834 sq mMiddle to upper income residents of WestSurabayaWest SurabayaTo be negotiated and agreed in good faith betweenthe parties, provided that such acquisition priceshall not be more than the appraised value ofSupermal Pakuwon Indah and Pakuwon TradeCenter as determined by an independentproperty valuer to be appointed by the Trusteeand the appraised value is agreed by the Vendorbefore the signing of the conditional sale andpurchase agreement.DescriptionSupermal Pakuwon Indah and Pakuwon Trade Center is strategically located in the heart of WestSurabaya’s affluent residential district. The tenants of Supermal Pakuwon Indah and Pakuwon TradeCenter provide a variety of shopping, dining and entertainment options to shoppers. Together with theconvention centre facilities, the retail mall aims to deliver a memorable and exciting retail experience.DESCRIPTION OF THE EXISTING PROPERTY MANAGEMENT AGREEMENTSOn 9 April 2006, each of the Retail Mall Indonesian SPCs have entered into an Existing PropertyManagement Agreement with the Property Manager pursuant to which the Property Manager willoperate, manage, maintain and market the Retail Malls.The initial term for each of these Existing Property Management Agreements is four years from the date ofthe agreement.Property Manager’s servicesThe services provided by the Property Manager for the relevant Retail Mall under its management shallinclude, among other things, the following:• Retail management services for the relevant Retail Mall, including (i) advising and developing astrategic management policy for tenants and service providers; (ii) reviewing the existingorganisational structure for the operation of the Retail Mall and making changes if necessary;(iii) reviewing and implementing policies relating to human resource administration, accounting andfinance, the collection of rental payments and service charges, financial reporting, maintenance, safety,security, insurance, tenancy mix, cleaning and car parking for the Retail Mall; (iv) reviewing andproviding input on vehicular and pedestrian flows and customer conveniences of the Retail Mall; and(v) providing public relations and customer services;235