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

• Strategic asset planning and reporting. Formulate strategic asset/property plans, including assetenhancement initiatives, marketing plans, budgets and reports, relating to the performance of LMIRTrust’s properties.• Financing. Formulate plans for equity and debt financing for LMIR Trust’s property acquisitions,distribution payments, expense payments and property maintenance payments.• Administrative and advisory services. Perform day-to-day operational services as LMIR Trust’srepresentative, including providing administrative services relating to meetings of Unitholders whensuch meetings are convened.• Investor relations.Communicate and liaise with Unitholders, media and investment community.• Compliance management. Make all regulatory filings on behalf of LMIR Trust and ensure that LMIRTrust is in compliance with the applicable provisions of the Securities and Futures Act and all otherrelevant legislation, the Listing Manual, the Code on Collective Investment Schemes (including theProperty Funds Guidelines) of Singapore (the “CIS Code”), the Trust Deed, any tax ruling and allrelevant contracts.• Accounting records.reports.Maintain books and prepare or cause to be prepared accounts and annual(See “The Manager and Corporate Governance—The Manager of LMIR Trust”.)The Manager’s key objectives are to deliver regular and stable distributions to Unitholders and to achievelong-term growth in the NAV per Unit in order to maximise Unitholders’ return.The Manager plans to achieve its key objectives through the following:Acquisition growth strategyLMIR Trust’s acquisition growth strategy envisages investments in retail and/or retail-related assets thatare in the interests of Unitholders. The assets in LMIR Trust’s initial portfolio are all located in Indonesia.LMIR Trust has the principal investment objective of owning and investing on a long-term basis in adiversified portfolio of income-producing real estate in Indonesia that are primarily used for retail and/orretail-related purposes, and real estate related assets in connection with the foregoing.LMIR Trust will benefit from the Sponsor’s ability to identify and enhance under-valued retail propertiesand leverage its extensive retail network in Indonesia. LMIR Trust will also benefit from the track record ofthe Mapletree Group, with its experience in managing yield-accretive assets in various markets such asMapletree Logistics Trust (“MapletreeLog”) and other private real estate funds in Asia. The MapletreeGroup’s total assets under management as at 31 March 2007 is S$1.7 billion.Active asset enhancement and management strategyImplementing pro-active measures to enhance returns from existing and future properties in LMIR Trust’sportfolio. Such measures may include addition and alteration works, including re-zoning, tenancy remixingand work carried out for the purpose of expanding size and capacity (in relation to properties to beacquired by LMIR Trust), leveraging and enhancing the properties’ competitive strengths to optimiserentals and enhancement projects to maintain the competitive positioning of such properties. TheManager will work with the relevant Indonesian authorities to obtain the necessary approvals toundertake such active asset enhancement works.(See “—Key Investment Highlights—Potential for growth through active asset management and tenant remixing”.)Capital and Risk Management StrategyWhile LMIR Trust will not be drawing down on the Debt Facilities as at the Listing Date, to the extent thatLMIR Trust incurs borrowings in the future, the Manager will employ an appropriate mix of debt and equityin the financing of future acquisitions. The Manager has a policy to undertake foreign exchange hedging ofthe expected distributions of LMIR Trust to insulate against movements in exchange rates (whetherfavourable or unfavourable). The Trustee, as trustee of LMIR Trust, has entered into a currency hedgingarrangement, effective as of the Listing Date, to optimise risk-adjusted returns to the Unitholders as atListing Date.48