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

KeyInvestmentHighlightsStrong acquisition growth potential The Sponsor has granted LMIR Trust, for so long as (i) Lippo-Mapletree Indonesia Retail Trust Management Ltd.remains the manager of LMIR Trust; and (ii) the Sponsor and/or any of its related corporations, alone or inaggregate, remains a controlling shareholder of the Manager, a right of first refusal (the “ROFR”) over any retailproperties located in Indonesia subject to certain conditions. As at Listing Date, the scope of the ROFRencompasses five properties currently under development by the Sponsor and/or its subsidiaries:Estimated GrossFloor AreaROFR Properties Expected Date of ("GFA") Estimated NLAUnder Development Location Completion (sq m) (sq m)Binjai Supermall North Sumatra Fourth quarter of 2007 23,615 18,300Pejaten Mall South Jakarta Second quarter of 2008 57,948 40,327Kuta Beach Mall Kuta, Bali Second half of 2008 41,562 30,735Kemang City Mall South Jakarta First half of 2009 77,555 56,052Puri "Paragon City" West Jakarta Second half of 2009 196,400 127,660Total 397,080 273,074If LMIR Trust acquires all the ROFR Properties, the aggregate NLA of LMIR Trust’s initial property portfolio willincrease by over 270,000 sq m, an increase of 87.4% of the aggregate NLA of LMIR Trust’s initial property portfolioas at 30 June 2007. The Sponsor is expected to continue developing retail malls across Indonesia, further enhancing the acquisitionpipeline for LMIR Trust. Ownership of retail malls in Indonesia is highly dispersed and fragmented, providing LMIR Trust with significantopportunities for such acquisitions. As at the Latest Practicable Date, the Manager has entered into non-bindingmemoranda of understanding in respect of the potential acquisition of the following malls:Estimated dateof acquisitionLocation GFA (sq m) NLA (sq m) by LMIR TrustCosmopolitan Mall Pluit North Jakarta 131,013 88,040 Second half of 2008Within six monthsSun Plaza North Sumatra 73,871 61,348 after the Listing DateSupermal Pakuwon Indah West Surabaya, Within six monthsand Pakuwon Trade Centre East Java 289,563 114,834 after the Listing DateTotal 494,447 264,222Exposure to the growing Indonesian retail sector Real GDP growth in Indonesia is forecast to increase from 5.5% in 2006 to 6.0% in 2007 and 6.1% in 2008.Average growth rate from 2007 to 2011 is forecast at 5.7% (5) . Nominal retail sales growth has averaged 11.0% per annum since 1999 with the growth rate forecastto continue from 2007 to 2011 (5) .Retail sales have also been boosted by a lifestyle shift towards a higher level of consumerism, particularlyamong the urban middle income group in major Indonesian cities such as Jakarta, Bandung, Semarang and Medan.(5) According to PT Jones Lang LaSalle