Press Release
LPKR SGD 88.1 Mn Yogyakarta Assets Injection To The REITS To Be Completed By End 2017. Fitch Rating Affirms BB- With Stable Outlook
6 December 2017

Lippo Karawaci, Tangerang
Wednesday, December 6, 2017

PT Lippo Karawaci Tbk (“LPKR”) announced today that both First REIT (“FIRT”) and Lippo Mall Indonesia Retail Trust (“LMRT”) will hold Extraordinary General Meeting (“EGM”) on Wednesday, December 20, 2017 to seek unitholders’ approval for the joint acquisition of Lippo Plaza Jogya (“LPJ”) and Siloam Hospitals Yogyakarta (“SHYG”) for total combined value of SGD 88.1 million (Rp 834.6 bilion)

Ketut Budi Wijaya, LPKR President Director was quoted as saying, “I am delighted to report that SHYG has been fully operational since July 2017 and is now back on track to be injected into the REITs. The completion of these two Yogya property acquisitions by end of 2017 will contribute nicely to LPKR’s revenues and profits in FY2017.”

This property, which is located at Jalan Laksda Adi Sucipto No. 32 – 34, Yogyakarta, is comprised of a a 10-storey building (including one basement and one mezzanine level) was originally built in 2005, built on land with a total land area of 13,715 sqm, as specified in its Right-to-Build Certificate. It has a shared multi-storey vehicle parking area on the upper levels totalling 752 cars and 875 motorcycle lots, and a helipad on the roof. SHYG has a GFA of 12,474 sqm with a maximum capacity of 220 beds and commenced operations under the “Siloam Hospitals” brand in July 2017 with Centres of Excellence for Neuroscience and Cardiology. Physical construction and redevelopment works for SHYG were completed in 2015. LPJ has a GFA of 66,098 sqm (comprising 35,965 sqm for mall and 30,133 sqm for the parking area) with a diverse range of tenants including a cinema, food retailers and a hypermarket. LPJ underwent major refurbishment from 2013 to 2015 and recommenced operations in June 2015. 

Important to note, on the rating front we are pleased to announce that  on November 30, Fitch Rating has affirmed LPKR’s credit rating to BB- with stable outlook. The affirmations reflect LPKR's improved performance, with presales rising to IDR5.4 trillion in 9M17 from a trough of IDR1.2 trillion in FY2016. LPKR's ratings are supported by continued and healthy recurring cash flow from its hospitals, malls, hotels and property management businesses, which generate recurring EBITDAR of more than 1.2x of consolidated interest costs and operating lease rent. This mitigates financial risk during a slowdown in property sales. LPKR has strong capital market access given its ability to inject mature properties into the Singapore REITs that it sponsors - a unique financing avenue available to the company over its rating peers.


About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)

LPKR is Indonesia's largest listed property company by total assets and revenues, anchored by a large land bank and solid recurring income base. LPKR's businesses comprise Residential/Townships, Retail Malls, Hospitals, Hotels and Asset Management. LPKR develops residential, light industrial, commercial, retail properties throughout Indonesia. LPKR through its subsidiaries manage and operate hospitals, malls and hotels in major cities in Indonesia and also provides a broad range of infrastructure services to the residents of our developments, and other property management and REIT management services.

Through our two main publicly listed subsidiaries, PT Lippo Cikarang, Tbk (“LPCK”) and PT Gowa Makassar Tourism Development Tbk (“GMTD”), of which LPKR owns 54.4% and 62.7% respectively, LPKR develops and currently operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar.  In addition, LPKR owns 51.05% of PT Siloam International Hospitals Tbk (“SILO”), the largest private hospitals network in Indonesia, which manages and operates 31 state-of-the-art-hospitals in 22 cities throughout the country, comprising 12 hospitals in Greater Jakarta and 19 hospitals distributed across Java, Sumatra, Kalimantan, Sulawesi, Bali and Nusa Tenggara supported by more than 2,700 specialists and general practitioners as well as over 9,600 nurses and support staff.

LPKR has created and sponsored two public listed REIT in Singapore, namely First Real Estate Investment Trust (“First REIT”) and Lippo Malls Indonesia Retail Trust (“LMIR Trust”). LPKR is listed on the Indonesian Stock Exchange with market capitalization of IDR 13.3 trillion or around USD 1 billion as at November 30, 2017.


For more information please contact:

Investor Relations:
William Wijaya Utama
Senior Manager
william.utama@lippokarawaci.co.id
Mobile: +62818138688

Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communications
danangj@lippokarawaci.co.id
Mobile: +628557801299


This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of LPKR. No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or 3 otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.

Forward-Looking Statements. Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.