LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Identified propertyLocationEstimatedGFAEstimatedNLA(sq m) (sq m)Estimated date of acquisitionby LMIR TrustCosmopolitan Mall Pluit . . . North Jakarta 131,013 88,040 Second half of 2008Sun Plaza . . . . . . . . . . . . . North Sumatra 73,871 61,348 Within six months after theListing DateSupermal Pakuwon Indahand Pakuwon TradeCenter . . . . . . . . . . . . . . . .West Surabaya,East Java289,563 114,834 Within six months after theListing Date494,447 264,222(See “Certain Agreements relating to LMIR Trust and the Properties—Description of Non-BindingMemorandum of Understanding”.)Potential for growth through active asset management and tenant re-mixing• The Manager intends to undertake active asset management to maximise the value and performance ofthe Properties. (See “Business and Properties—Asset Enhancement”.)• As at the Latest Practicable Date, three of the Retail Malls, Bandung Indah Plaza, Mal Lippo Cikarangand Ekalokasari Plaza have recently completed extensive asset enhancement works and a fourth RetailMall, The Plaza Semanggi is currently undergoing asset enhancement works.- Bandung Indah Plaza has recently completed enhancement and renewal works which created anadditional NLA of approximately 3,843 sq m.- Mal Lippo Cikarang has recently completed the building of an extension which has increased the NLAof the mall’s hypermarket and specialty space by 10,694 sq m. As at 30 June 2007, 8,539 sq m orapproximately 79.8% of the additional NLA created from such asset enhancement has been precommittedto Hypermart, one of Indonesia’s leading hypermarket chains.- Ekalokasari Plaza has recently completed asset enhancement works which created an additionalNLA of 5,013 sq m by adding a third floor and a mezzanine floor. This development incorporates a foodcourt, a proposed fitness centre and potentially a cinema as anchor tenants for the top levels of thecentre. These asset enhancement works are expected to improve shopper traffic throughout all levelsof the mall. As at 30 June 2007, 670 sq m or approximately 13.4% of the additional NLA created fromsuch asset enhancement has been pre-committed.- The Plaza Semanggi is undergoing asset enhancement works to include a new alfresco café areacalled the “Plangi on the Sky” café, which will increase NLA by approximately 3,000 sq m by the end of2007.Each of Bandung Indah Plaza, Mal Lippo Cikarang and Ekalokasari Plaza has either obtained, or is in theprocess of obtaining, final local government approval for the recently completed asset enhancement workswhich have created additional NLA.• The completion of these asset enhancement works are expected to enhance the positioning andbranding of the Retail Malls within their respective trade areas and increase shopper traffic. Further, theManager has also identified several asset enhancement opportunities at some of the Retail Mallsthrough reconfiguration of retail unit layouts, improvement of tenancy mix in conjunction with therepositioning and re-branding of such malls, conversion of ancillary areas into productive retail spaceand the implementation of other proactive asset management initiatives such as identifying the latestretail trends and offerings.• Lippo Strategic has entered into a rental guarantee deed (“Rental Guarantee Deed”) with the relevantRetail Mall Singapore SPCs pursuant to which Lippo Strategic will (i) provide a rental guarantee to therelevant Retail Mall Singapore SPC in respect of existing units and new units in the respective RetailMalls which are untenanted and (ii) undertake to pay to the relevant Retail Mall Singapore SPC anyshortfall in the maintenance and operation costs which the relevant Operating Company hasundertaken to bear under the respective Operating Costs Agreement. (See “Certain AgreementsRelating to LMIR Trust and the Properties—Description of the Rental Guarantee Deeds”.)4