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

Leased MallsWhile BIP is likely to continue to be subject to new competition, it has retained its strong position as one ofthe metropolitan area’s most favoured retail destinations by virtue of its central location, popularity with theyouth segment and strong tenancy mix. Current redevelopment should consolidate BIP’s position as amajor shopping destination in Bandung, despite new competition.4.4 Istana Plaza4.4.1 Regional context and local economyBandung is the capital of West Java Province, the most populous province in Indonesia. It is locatedapproximately 128 kilometres southeast of Jakarta and is connected to Jakarta by a toll road.The metropolitan area occupies an elevated basin some 770 metres above sea level, giving Bandung arelatively pleasant, cool climate.Bandung has a strong association with its Dutch colonial past. The Dutch influence can be seen throughthe Dutch colonial architecture prevalent in Bandung.Bandung is also famous for its textile industry, with numerous international labels having set up factories inthe region. The city has become a popular weekend destination for residents from Jakarta, who are drawnto the factory outlets selling internationally famous designer brands and local designers’ clothes at lowprices.Bandung has nearly 50 higher educational institutions, including numerous universities that attractstudents from throughout Indonesia and overseas. The most famous and oldest university is theBandung Institute of Technology, which was established in 1920. Other well known institutions includethe University of Parahyangan and the University of Pajajaran.Other industries associated with the Bandung region include agriculture (rice, tea etc.) and high-techindustries (aircraft, military and telecommunications).As at the 2000 National Census, the population of West Java was 35.7 million. This excludes the westernpart of the province, which was split in 2000 to form the province of Banten, and Jakarta, which is its ownprovince. In 2006, the Bandung municipality had a population of approximately 2.3 million.4.4.2 DescriptionCommencing operation in November 2001, Istana Plaza (IP) has quickly become a major communityfocus for the northern and western region of Bandung, including the large local Chinese population. Thecentre provides a relatively comprehensive retail offering targeting the middle to middle-upper incomeresidents in this region.The centre is located at the junction of two busy roads, Jl. Pasir Kaliki and Jl. Pajajaran, and is consideredone of the major modern shopping malls serving the population of Bandung. It is approximately2 kilometres west of the centre of Bandung.IP comprises four retail levels and two basements with a total NLA of 27,247 sq.m. Table 4.4.1 providesdetails of the centre.F-75