Circular - Lippo Malls Indonesia Retail Trust - Investor Relations

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Basis of ValuationThe International and <strong>Indonesia</strong>n Valuation Standard (Standar Penilaian <strong>Indonesia</strong>) defined MarketValue as follows :“The estimated amount for which an asset should exchange on the date of valuation between awilling buyer and a willing seller in an arm’s-length transaction after proper marketing wherein theparties had each acted knowledgeably, prudently and without compulsion “. (SPI.1.3.1)We understand that the market of the property is transacted in Rupiah currency; therefore, we havevalued the property on Rupiah currency. We advise that the use of currency other than stated in thisreport is not applicable. However, for your information only, the exchange rate at the date ofvaluation is US $1= Rp9,480/- (middle rate).We advise that the market value opinion is without regard to costs of sale or purchase and withoutoffset of any associated taxes.Assumption of Valuation1. The value that stated in this report is restricted to the purpose of this valuation. The value thatstated in this valuation report cannot be used for other valuation purpose which can bemistakenly quoted.2. The title of the subject property is assumed to be good marketable title and free and clear fromall liens and encumbrances, easements, restriction, or limitation. We did not make any spacemeasurement and we assumed that the situation drawing contained in the certificates and/orprovided by the Client is true and accurate.3. The subject property is managed professionally and competently.4. This valuation certificate depends on the terms, conditions, comments and details as stated inthe full report.Approach of ValuationMarket ValueIdeally the Market Value should be based on market evidence using normal arm’s lengthtransaction of similar property. However, we have found no direct comparable evidence of thesubject property in similar vicinity within close period of time that can be used as comparable in themarket comparison approach. In this valuation, we have used income approach to replicate aninvestor’s point of view in acquiring an income producing property where earning capability is thecritical element affecting property value. In the income approach, we analyses the subject property’scapacity to generate future benefits and capitalizes the net income into an indication of presentvalue.Income Approach – DCF methodWe have utilized the DCF analysis in this income approach valuation by making consideration ofprobable income and expenses over the designation projection period (holding period), which isdifferent between BOT properties and non-BOT properties. In this DCF analysis, we have set forthVALUATION & ADVISORY SERVICESiiD-10
forecasts of income, expenses and changes in occupancy rate and capital expenditure over theprojection period, and the terminal value is also be estimated. Therefore, we have made severalassumptions including market rental rate, rental annual growth for each tenancy, occupancy rate,related operating expenses, replacement allowance, and CAPEX established on analysis of historicaldata and prospective market conditions.Shopping malls under BOT agreement is classified as leasehold interest and will expire inaccordance with the BOT tenure, therefore the holding period is determined by the remaining BOTperiod, with no terminal value. We also have calculated the annual sinking fund which willrecapture the capital outlay at the end of BOT period.The discount rate used in converting the projection of NOI will be slightly higher than the rate usedin the non-BOT shopping malls to reflect its leasehold nature.Source of InformationWe have been provided by the Client with copy of land title certificates, summary of tenancyschedule, copy of several lease agreements, copy of building permit letter, copy of property tax, andothers related documents. We have assumed these are true and correct.Confidentially and DisclaimersIn accordance with our normal practice we confirm that this report is confidential to the parties forthe specific purpose to which it refers. No responsibility is accepted regarding any third party, andneither the whole of the report nor any part or reference there to may be published in anydocument, statement or circular, nor in any communication with third parties without our priorwritten approval of the form and context in which it will appear.We hereby enclose our valuation certificate.Yours faithfullyFor and on behalf ofKJPP Rengganis, Hamid & PartnersIr. Rengganis Kartomo, MSc. MAPPI (Cert)Managing PartnerLicensed Valuer No. PB-1.08.0006MAPPI No. 95-S-0632VALUATION & ADVISORY SERVICESiiiD-11
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CIRCULAR DATED 26 NOVEMBER 2012THIS
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TABLE OF CONTENTSPageCORPORATE INFO
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SUMMARYThe following summary is qua
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Key Benefits of the Proposed Acquis
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METHOD OF FINANCINGThe Manager inte
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RESOLUTION 2: PROPOSED ACQUISITION
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INDICATIVE TIMETABLEThe timetable f
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and are in line with the Manager’
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KJPP WR and KJPP RHP were appointed
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Acquisition is an Interested Party
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The Trustee had, on 23 October 2012
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(vi)the lease agreement made by and
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Based on the Manager’s experience
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(iii)The relative figures for each
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Therefore, each of the Pejaten Vill
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4.6. Interests of Directors and Sub
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The reduction in the absolute amoun
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5.2. Six months ended 30 June 2012P
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The maximum possible increase in th
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(v)(vi)LMIR Trust appoints an indep
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7.3. On the Whitewash ResolutionThe
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IMPORTANT NOTICEThe value of Units
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(viii) other investments not covere
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EGM : The extraordinary general mee
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Mandatory Offer : A general offer m
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Sea Pejaten : Sea Pejaten Pte. Ltd.
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APPENDIX AINDEPENDENT FINANCIAL ADV
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The Manager intends to finance the
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“6.3. Rationale for the Whitewash
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Page 63 and 64: 2.1.2. Opportunity to Enhance the E
Page 65 and 66: The Valuation Reports assess: the m
Page 67 and 68: Based on the financial year ended 3
Page 69 and 70: Six months ended 30 June 2012Pro-fo
Page 71 and 72: Selected comparable companies in So
Page 73 and 74: (i)(ii)all and any losses which the
Page 75 and 76: AnnouncementDateCompletionDateREITP
Page 77 and 78: The Independent Directors should no
Page 79 and 80: APPENDIX BINFORMATION ABOUT THE ENL
Page 81 and 82: The table below sets out a summary
Page 83 and 84: Gross revenue for 6M2012 Rp.23.6 bi
Page 85 and 86: 2.3 Tamini Square2.3.1 Description
Page 87 and 88: Occupancy rate (as at 30September 2
Page 89 and 90: The mall has a good tenancy mix whi
Page 91 and 92: (5) Ekalokasari PlazaEkalokasari Pl
Page 93 and 94: (10) Plaza Medan FairPlaza Medan Fa
Page 95 and 96: Malang Town Square, in which Malang
Page 97 and 98: 3.3 Major Usage Mix for the Septemb
Page 99 and 100: Usage Mix (by Rental Income for the
Page 101 and 102: APPENDIX CTAX CONSIDERATIONSThe fol
Page 103 and 104: APPENDIX DSUMMARY VALUATION REPORTS
Page 105 and 106: To : HSBC Institutional Trust Servi
Page 107 and 108: forecasts of income, expenses and c
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Page 111: To : HSBC Institutional Trust Servi
Page 115 and 116: APPENDIX EEXISTING INTERESTED PERSO
Page 117 and 118: APPENDIX FRELATED TENANCY AGREEMENT
Page 119 and 120: NOTICE OF EXTRAORDINARY GENERAL MEE
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Circular - Lippo Malls Indonesia Retail Trust - Investor Relations

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