Circular - Lippo Malls Indonesia Retail Trust - Investor Relations

and are in line with the Manager’s acquisition growth strategy of owning retailand/or retail related properties to optimise Unitholders’ returns, as well asprovide potential capital appreciation and long-term growth.PropertyPurchaseConsideration/AggregateConsiderationAverage ofIndependentValuationsconducted byKJPP RHP andKJPP WRDiscountto theAverageValuations(%)Pejaten VillageRp.748.0 billion(S$95.1 million)Rp.855.6 billion(S$108.8 million)12.6%Binjai SupermallThe BinjaiSupermallAggregateConsideration isRp.237.5 billion(S$30.2 million).Rp.250.5 billion(S$31.8 million)5.2%As at 30 September 2012, the occupancy rates of Pejaten Village and BinjaiSupermall are 96.3% and 91.2% respectively. The high occupancy rates are areflection of the strong demand for retail space in Jakarta, where Pejaten Villageis located, as well as the strategic location of Binjai Supermall, which iscurrently the only mall in Binjai City which serves as a transit area for peopletravelling from Medan to Aceh.2.1.2. Opportunity to Enhance the Earnings of LMIR TrustBased on the pro forma financial statements for the year ended 31 December2011, the pro forma Net Property Income 1 contribution from Pejaten Village andBinjai Supermall was Rp.55.1 billion (S$7.0 million). Based on the pro formafinancial statements for the six months ended 30 June 2012, the pro forma NetProperty Income contribution from Pejaten Village and Binjai Supermall wasRp.39.4 billion (S$5.0 million), which represents, on a historical pro forma basis,a 9.0% increase in LMIR Trust’s investment value and a 16.3% increase in LMIRTrust’s Net Property Income.2.1.3. Strategic Locations with Sustainable Retail TrafficThe Proposed Properties are strategically located within Jakarta and Binjai (atransit point between Medan, the largest city in Sumatra, and Aceh), givingLMIR Trust access to the dense populations located in these cities, therebyensuring sustainable retail traffic at these properties.LMIR Trust’s retail malls are positioned as “Everyday Malls” that providenecessities (e.g. supermarkets and family shopping) to the community living inthe regions neighbouring its retail malls and target the middle income populationin densely populated cities in Indonesia. The positioning of the ProposedProperties are in line with LMIR Trust’s targeted market segment comprisingIndonesia’s expanding and prospering urban middle class segment.1 “Net Property Income” consists of property revenue less property operating expenses.11