LPKR and Siloam Hospitals Reach Lease Extension Agreement Through 2035

01/04/21

JAKARTA, April 1, 2021 – PT Lippo Karawaci Tbk (LPKR) and Siloam Hospitals (RS Siloam) announced that both parties have successfully reached a new agreement regarding lease payments for 11 Siloam Hospitals. This agreement is effective as of January 1, 2021. It marks a key milestone in enhancing transparency and corporate governance between the parent company and its subsidiary.

LPKR and RS Siloam agreed that lease fees will continue to be based on a percentage of revenue, but will be adjusted annually under a new scale:

  • 6.0% in 2021

  • 6.1% in 2022

  • 6.2% in 2023

  • 6.3% in 2024

  • 6.4% in 2025 and 2026

  • 6.5% from 2027 onwards

This agreement ensures long-term operational certainty for Siloam Hospitals. Additionally, it allows LPKR to achieve cost savings of IDR 154 billion in 2021 compared to the previous lease structure. Going forward, the agreement is expected to generate added value for both Siloam Hospitals and LPKR as its largest shareholder.

desktop-1763621766917.webp

About Lippo Karawaci ("LPKR")
www.lippokarawaci.co.id
Listed on the Indonesia Stock Exchange, PT Lippo Karawaci Tbk (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of USD 4.0 billion as of September 30, 2020. The company's core businesses include urban housing development, lifestyle malls, and healthcare services. LPKR is also actively involved in integrated developments, hospitality, township development and management, and asset management services.

Operating in 40 cities, LPKR is a premier property developer in Indonesia with a 1,416-hectare landbank ready for development. Through its two publicly listed subsidiaries, PT Lippo Cikarang Tbk and PT Gowa Makassar Tourism Development Tbk—of which LPKR owns 80.83% and 32.5% respectively—LPKR develops and operates townships in Lippo Cikarang (Bekasi) and Tanjung Bunga (Makassar).

In addition, LPKR owns a 42.55% stake in PT Siloam International Hospitals Tbk, Indonesia’s leading private hospital network with 39 hospitals across 24 cities nationwide. LPKR also has a REIT unit listed on the Singapore Stock Exchange, Lippo Malls Indonesia Retail Trust, managing assets worth USD 1.6 billion as of September 30, 2020.

For more information, please contact:
Danang Kemayan Jati
PT Lippo Karawaci Tbk
Email: DanangJ@lippokarawaci.co.id

Share to