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Appendix EReport No.017/WPA-Report/2007Page 33.As for the shopping centers under BOT arrangements, since we are considering the leasehold interest upto the expiry of the BOT tenure, the sixth year’s net income is not capitalized at a single capitalization rate toperpetuity in view that the Properties may be surrendered to the land owner at the end of the BOT tenure,hence, the Properties may not have a terminal disposal capital value per se as would have been the casefor the shopping centers held under HGB titles. In order to arrive at the fifth year’s terminal capitalizedvalue for the BOT properties for the remaining years of the BOT period, we have capitalized the sixth year’snet income using dual capitalization rates i.e. a generally accepted terminal capitalization rate for similarproperties held under HGB title, which takes into account a sinking fund provision in order to recoup theinitial capital outlay at the end of the BOT period.The conversion of projected annual income streams into an estimate of the total present value is byapplication of a 14% annual discount rate based on our assessment of the current market requirementsand the local property market conditions for an investment return over a five-year period from suchproperties located in <strong>Indonesia</strong>.We have also taken into account annual capital expenditure which is to be deducted from the projectedannual rental income streams. Provision for capital expenditure is essential in order to maintain theProperties at a reasonable condition and to keep up with its current competition level in the market.Investment MethodIn the Investment Method, the estimated gross revenue has been adjusted to reflect an ongoing vacancyand subject to an operating company will manage the shopping centers and absorb all operating expensesto arrive at a net income. Gross revenue comprises rental from existing tenancies, potential future incomefrom existing vacant units and turnover and other income of the Properties. Other income is in respect ofsundry (e.g. license fees, rentals of atrium/kiosks, etc.) and car park income.The net income of the shopping centers held with HGB titles and/or with freehold strata title or itsequivalent is capitalized at a capitalization rate which is appropriate for the type of use, tenure andreflective of the quality of the investment, based on analysis of yields reflected in the sales of comparableproperty types. Whilst, the net income of the shopping centers held under BOTarrangements is capitalizedusing dual capitalization rates i.e. a generally accepted terminal capitalization rate for similar propertiesheld under HGB title, which takes into account a sinking fund provision in order to recoup the initial capitaloutlay at the end of the BOT period.Capital adjustments such as letting up allowance, capital expenditure provisions and capitalized rentalreversions, royalty fees and/or other payments associated with the BOT agreements and the addendumsto the land owners where applicable are then made to derive the capital value of the Properties.E-34Continue to page 34.
Appendix EReport No.017/WPA-Report/2007Page 34.Conclusion and Summary of ValuesWe are of the opinion that the total aggregate Market Value of the Properties as at 30 June 2007; subject tothe existing and proposed leases, occupancy and operational arrangements of the Properties, the termsand conditions of the relevant BOT agreements and their addendums, the terms and conditions of theproposed lease arrangements of the retail outlet stores with PT. Matahari Putra Prima Tbk as stipulated inthe proposed Lease Agreements; the transfer of ownership of the Properties, the execution of theproposed Lease Agreements, the execution of the proposed Operating Company Agreement, thefactual data, our assumptions, comments, qualifications, and limiting conditions as detailed in our fullReports, is:Rp. 5,927,600,000,000.(Rupiahs Five Trillion Nine Hundred Twenty Seven Billion and Six Hundred Million Only)Reflecting Singapore Dollars 1,004,677,966 at an exchange rate of Rp. 5,900 for every Singapore Dollar.The following table summarizes the salient valuation assumptions and Market Value for each of theProperties:PropertiesMarket valueas at30 June 2007DiscountrateTerminal capitalizationInitialrateyield Dual rate Single rateThe Plaza Semanggi . . . . . . . . . . . Rp. 1,267,600,000,000.* 14% 9.1% 9.5%/6.5% —Gajah Mada Plaza. . . . . . . . . . . . . Rp. 612,300,000,000. 14% 6.7% — 11%Cibubur Junction . . . . . . . . . . . . . . Rp. 555,700,000,000.* 14% 9.7% 9.5%/6.5% —Bandung Indah Plaza . . . . . . . . . . Rp. 734,300,000,000.* 14% 7.0% 10.5%/6.5% —Istana Plaza . . . . . . . . . . . . . . . . . Rp. 741,800,000,000.* 14% 7.5% 9.5%/6.5% —Ekalokasari Plaza . . . . . . . . . . . . . Rp. 389,500,000,000.* 14% 8.3% 9.5%/6.5% —Mal <strong>Lippo</strong> Cikarang . . . . . . . . . . . . Rp. 473,100,000,000. 14% 6.6% — 10.5%13,045-sqm retail space atDepok Town Square . . . . . . . . . . Rp. 151,400,000,000. 14% 6.3% — 9.5%11,184-sqm retail space atMall WTC Matahari . . . . . . . . . . Rp. 148,500,000,000. 14% 6.3% — 9.5%15,248-sqm retail space atMetropolis Town Square . . . . . . . Rp. 197,900,000,000. 14% 6.4% — 9.5%11,082-sqm retail space atJava Supermall . . . . . . . . . . . . . Rp. 153,300,000,000. 14% 6.0% — 9.5%19,029-sqm retail space atPlaza Madiun . . . . . . . . . . . . . . Rp. 197,200,000,000. 14% 6.0% — 9.5%11,065-sqm retail space atMalang Town Square . . . . . . . . . Rp. 150,700,000,000. 14% 6.1% — 9.5%13,417-sqm retail space atGrand Palladium . . . . . . . . . . . . Rp. 154,300,000,000. 14% 6.3% — 9.5%Total Aggregate. . . . . . . . . . . . . . . Rp. 5,927,600,000,000. 7.80%Note:* Market Value for the interest of the BOTright holder over the right to operate the Properties pursuant tothe relevant BOT agreements and their addendums.Continue to page 35.E-35
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LIPPO-MAPLETREEINDONESIA RETAIL TRU
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Metropolis Town SquareMall WTC Mata
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KeyInvestmentHighlightsStrong acqui
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Locked-in master leases with rental
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1. Mall WTC Matahari UnitsRetail Sp
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Notice to investorsNo person is aut
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Forward-looking statementsCertain s
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Market and industry informationThis
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SummaryThe following summary is qua
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a right of first refusal (the “RO
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• The management of all the Retai
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information was extracted are based
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2006. It is estimated that the urba
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Further, the Retail Malls are manag
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Key Information on the PropertiesA
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Location of the Properties in Indon
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INFORMATION ON THE PROPERTIESThe Re
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Pictures of Gajah Mada Plaza19
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Percentage of contribution to LMIRT
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Number of tenants as at 30 June2007
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Car parking lots . . . . . . . . .
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Occupancy rate as at 30 June 2007.
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Year of building completion . . . .
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NLA as at 30 June 2007 . . . . . .
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Year of building completion . . . .
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Appraised value by Knight Frank as
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NPI for Forecast Period 2007,Projec
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Note:(1) Based on Strata Titles Own
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Note:(1) Based on Kiosks Sale and P
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Appraised value by Colliers as at30
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Percentage of contribution to LMIRT
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Notes:(1) These 14 Singapore SPCs (
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(See “Strategy—Capital and Risk
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Operating Companies: PT Multi Nusan
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Payable by LMIR Trust(c) Any other
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The offeringLMIR Trust . . . . . .
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Lock-ups . . . . . . . . . . . . .
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Listing and Trading . . . . . . . .
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Singapore are made in accordance wi
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Forecast Period2007Projection Year2
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Risk factorsProspective investors s
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Risk factorssimilar tenancy terms.
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Risk factors• losses arising from
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Risk factorsacquisitions is limited
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Risk factorsafter the proposed plan
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Risk factorsIf the tenure of the un
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Risk factorsThe Properties may be s
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Risk factorsRenovation work or phys
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Risk factorsSuch compulsory acquisi
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Risk factorsthereby materially and
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Risk factorsinterpretation by the I
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Risk factors• broad market fluctu
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Ownership of UnitsPRINCIPAL UNITHOL
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DistributionsThe distributable inco
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Exchange rates and exchange control
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CapitalisationThe following table s
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Unaudited pro forma consolidated ba
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Profit forecast and profit projecti
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StrategyDate, to the extent that LM
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StrategyGiven that there is limited
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Strategyterm funding in a more cost
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Business and propertiesIn addition,
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Business and propertiestheir daily
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Business and propertiesValuationEac
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Business and propertiesThe followin
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Business and propertiesINFORMATION
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Business and propertiesother strata
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Business and propertiesBecause of t
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Business and propertieswell-known c
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Business and propertiesThe largest
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Business and properties“Overview
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Business and properties200 sq m and
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Business and properties• Mal Cima
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Business and propertiesTHE PLAZA SE
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Business and propertiesThe table be
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Business and properties• Epicentr
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Business and propertiesMAL LIPPO CI
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Business and propertiesPercentage o
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Business and propertiesfloor. The o
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Business and properties• Pangrang
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Business and propertiesBANDUNG INDA
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Business and propertiesAmendment to
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Business and propertiesISTANA PLAZA
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Business and propertiesThe Istana P
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Business and propertiesRelevant inf
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Business and propertiesAppraised va
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Business and propertiesDescriptionP
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Business and propertiesSun PlazaMed
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The Manager and corporate governanc
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The SponsorThe business structure o
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The Sponsorshopping, entertainment
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The SponsorKEY SHAREHOLDERS OF THE
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The formation and structure of LMIR
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Certain agreements relating to LMIR
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Overview of relevant laws and regul
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TaxationSINGAPORE TAX IMPLICATIONST
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Taxationbe applied to reduce the co
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TaxationOn the rental payments to t
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Plan of distributionThe Manager is
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Plan of distributionThe restriction
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Plan of distributionNote:(1) Includ
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Plan of distributionArticle 31, sec
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Plan of distributionUnited States o
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Clearance and settlementINTRODUCTIO
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General information(1) The profit f
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General information(f)(g)(h)Rule 74
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Glossary% Per centum or percentageA
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GlossaryColliersColliers Internatio
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GlossaryIndonesian SPCsInterested P
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GlossaryNPIOCBC BankNet property in
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GlossaryRetail Space Singapore SPCs
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GlossaryUnit Lending AgreementUnit
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Appendix AINDEPENDENT ACCOUNTANTS
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Appendix BINDEPENDENT ACCOUNTANTS
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Appendix BLIPPO-MAPLETREE INDONESIA
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Appendix BPro Forma Consolidated Ba
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Appendix B(D)Pro Forma Consolidated
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Appendix B(x)(xi)(xii)(xiii)(xiv)S$
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Appendix BCash and cash equivalents
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Appendix BLeased assets—Leases in
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Appendix Btemporary difference; and
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Appendix B• The Trustee, the Mana
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Appendix BDeferred income represent
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Appendix Bfinancial year exceeds th
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Page 325 and 326: Appendix B4. Bandung Indah PlazaPT
Page 327 and 328: Appendix CINDEPENDENT SINGAPORE TAX
Page 329 and 330: Appendix CGains on disposal of shar
Page 331 and 332: Appendix CDisposal of UnitsSingapor
Page 333 and 334: Appendix DINDEPENDENT INDONESIAN TA
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Page 341 and 342: Appendix EINDEPENDENT PROPERTY VALU
Page 343 and 344: Appendix EReport No.017/WPA-Report/
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Page 377 and 378: Appendix ERef. No: V/2006/PKG/3819
Page 379 and 380: Appendix EVALUATION CERTIFICATEProp
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Page 401 and 402: Appendix EADDENDUM—STATEMENT OF A
Page 403 and 404: Appendix FINDEPENDENT REPORT ON THE
Page 405 and 406: TABLE OF CONTENTSREPORT INSTRUCTION
Page 407 and 408: Report instructionsAbout Jones Lang
Page 409 and 410: Executive summaryIMPLICATIONS FOR R
Page 411 and 412: Overview of Indonesia and its Econo
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Retail Market OverviewTable 2.1.1 I
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Retail Market Overview2.3 Changing
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Retail Market Overviewretailers hav
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Retail Market OverviewCompletionyea
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Retail Market Overview2.7.5 Carrefo
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Retail Market OverviewIn view of th
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Overview of PortfolioAs the adminis
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Overview of PortfolioFigure 3.1.4:
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Overview of PortfolioFigure 3.2.2 B
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Overview of PortfolioFigure 3.2.4 S
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Overview of PortfolioFigure 3.2.6 M
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Overview of PortfolioFigure 3.3.1 L
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Overview of PortfolioMall WTC Matah
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Leased MallsFigure 4.1.1 Cibubur Ju
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Leased MallsTable 4.1.3 Major tenan
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Leased MallsTable 4.1.4 Cibubur Jun
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Leased Malls4.1.7 SWOT analysisTabl
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Leased Malls4.2 Plaza Semanggi4.2.1
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Leased Mallsnumber of international
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Leased MallsTaking the survey and t
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Leased Malls• There are two major
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Leased Mallsterms of its very promi
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Leased MallsFigure 4.3.2 Bandung In
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Leased Malls• In terms of reasons
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Leased Mallsand approximately 38,00
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Leased MallsWhile BIP is likely to
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Leased MallsFigure 4.4.2 Istana Pla
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Leased Malls• The main reason sta
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Leased Malls• Cihampelas Walk is
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Leased MallsFigure 4.4.4: Istana Pl
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Leased MallsOn the completion of th
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Leased MallsThe target market for M
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Leased MallsThe current Hypermart e
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Leased MallsFigure 4.6.2 Gajah Mada
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Leased Malls• Of all the malls in
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Leased Mallshypermart. The centre a
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Leased MallsTable 4.6.7: Rental pos
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Leased Malls4.7.3 Tenant mixThe cur
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Leased Mallsprimarily the city of B
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Leased MallsTable 4.7.5: Main compe
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Retail Spaces Malls5. RETAIL SPACES
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Retail Spaces MallsIn addition, loc
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Retail Spaces MallsThe store target
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Retail Spaces MallsTable 5.3.1: Cen
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Retail Spaces MallsFigure 5.3.3: Gr
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Retail Spaces MallsThis relatively
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Retail Spaces MallsStrata title sho
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Retail Spaces MallsMadiun are locat
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Retail Spaces MallsFigure 5.6.3 Pla
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Retail Spaces MallsThe centre has t
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Appendix GTERMS, CONDITIONS AND PRO
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Appendix G(15) The Manager reserves
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Appendix GAdditional Terms and Cond
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Appendix G(10) By completing and de
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Appendix GAdditional Terms and Cond
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Appendix GWhere your Electronic App
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Appendix GApplication to the Manage
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Appendix GTerms and Conditions for
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Appendix HLIST OF PRESENT AND PAST
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Appendix H(6) Mr Tan Boon LeongCurr
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Appendix HCurrent DirectorshipsMapl
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Appendix HCurrent DirectorshipsMapl
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LIPPO-MAPLETREE INDONESIA RETAIL TR
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