Press Release
Gateway Partners Joins George Raymond Zage III And Chow Tai Fook In Investing In Lippo Karawaci
7 May 2019
  • Gateway Partners' investment is a testament to LPKR's transformation progress to date
  • LPKR's share and bond prices have rallied on the back of the Company's transformation
  • LPKR to focus on execution, returns and cash flow generation 

Jakarta – PT Lippo Karawaci Tbk ("LPKR" or the "Company") today welcomes the commitment of private equity firm Gateway Partners LLC ("Gateway Partners") to participate in its rights issue. This follows the undertakings signed by Mr. George Raymond Zage III[1]  and Chow Tai Fook Nominee Limited[2]  to purchase rights and to subscribe for LPKR's rights issue, and provides further validation of investors' renewed trust in the Company's ability to deliver on its transformation plan.

Since the announcement of LPKR's transformation plan on March 12, the Company has seen its share price rebound and its bonds become one of the best performing in Asia. The Company’s transformation is timely given President Joko Widodo is on course to be re-elected, fueling Indonesia's growth momentum and optimism in LPKR as Indonesia's largest real estate company by revenues, and assets.

Based in Singapore and Dubai, Gateway Partners is managed by Mr. V. Shankar, former board member and Chief Executive Officer of Standard Chartered Bank for Europe, Middle East, Africa and the Americas. The firm's fund, Gateway Fund I, with total assets of USD757 million in early 2019, focuses on companies that serve the everyday needs for ordinary people in emerging Asia and Africa. 

Mr. Shankar said, "Gateway Partners adopts a back-to-basics investment strategy, identifying companies that are set to benefit from favourable demographics, rising per capita consumption and burgeoning urbanisation. Lippo Karawaci fits our investment mandate perfectly, given its focus on the housing and healthcare needs of Indonesia's rising middle class."

Mr. John Riady, CEO of LPKR, said: "Gateway Partners' investment in Lippo Karawaci signifies their confidence in our ability to cater to the growing demand for housing, and world-class healthcare services in Indonesia. We are grateful for Gateway Partners' participation and will continue to focus on execution and generate returns for our shareholders." 

Other companies in the Gateway Partners' portfolio include Vietnam's real estate developer No Va Land Investment Group; Singapore's clinic chain Healthway Medical; Indonesia's largest water treatment company Moya Holdings Asia; and India's bread and baked goods producer Mrs. Bectors Food Specialities.


About Lippo Karawaci ("LPKR") (www.lippokarawaci.co.id)

Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of US$3.9bn at 31 March 2019. Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.

Present in 36 cities, we are Indonesia’s leading property developer with 1,283 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 54.4% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. Additionally, LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 37 hospitals across 28 cities nationwide.

LPKR also has two listed REITs in Singapore, namely First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust with US$1.0bn and US$1.5bn of assets under management respectively, as at 31 March 2019. 


For more information please contact:

Investor Relations:
Bret Ginesky Head of Investor Relations
Bret.Ginesky@lippokarawaci.co.id
Mobile: +62818181815

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

[1]Investment will be made through Tiga Investments Pte Ltd. 
[2]Investment will be made through Swift Hunter Limited, a wholly-owned subsidiary of Chow Tai Fook Nominee Limited.

 

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 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.