Jakarta. Lippo Karawaci, Indonesia's largest listed property company by assets and revenue, announced on Tuesday (03/01) the completion of a sale of its two assets in Indonesia to its sponsored real estate investment trusts in Singapore.
In a statement on Tuesday, Lippo Karawaci said it has sold Lippo Mall Kuta in Bali to Lippo Malls Indonesia Retail Trust (LMIRT), a Singapore-listed real estate investment trust.
This transaction is estimated to boost Lippo Karawaci's revenue in 2016 by Rp 780 billion ($58 million) and its net income by Rp 208 billion.
For LMIRT, listed on the Singapore Stock Exchange since Nov. 19, the acquisition has increased its portfolio, now comprising 20 retail malls and seven major retail spaces in various locations in Indonesia.
LMIRT invests in income-producing real estate in Indonesia primarily used for retail and retail-related purposes.
Meanwhile, the sale and leaseback of Siloam Hospital Labuan Bajo to First Real Estate Investment Trust, known as First REIT, was wrapped up on Dec. 30.
Lippo Karawaci said Siloam Hospitals Labuan Bajo, a three-story hospital with a gross flo0r area of 7,604 square meters and 153 hospital beds, was sold for S$20 million.
First REIT, listed on the Singapore Exchange Securities Trading since Dec. 11, is the first healthcare real estate investment trust in the city-state with a diversified portfolio of income-producing property assets in Asia used mainly for healthcare and healthcare-related purposes.
Acquiring the Labuan Bajo hospital has enlarged First REIT’s portfolio to 18 properties located in Indonesia, Singapore and South Korea.
Both LMIRT and First REIT are sponsored by Lippo Karawaci.
"We're delighted that the Lippo Mall Kuta sale was completed as expected by the end of 2016, enhancing Lippo Karawaci’s revenue and net profit last year," Ketut Budi Wijaya, President Director of Lippo Karawaci, said in Tuesday's statement.
"Coupled with Siloam Hospitals Labuan Bajo's acquisition by First REIT, we've once again proved the sustainability of Lippo Karawaci’s asset-light and recycling capital strategies which have continued to increase the company’s cash flow and strengthen our financial position.”
The Jakarta Globe is affiliated with Lippo Karawaci via the Lippo Group.