PT Lippo Karawaci Tbk today announced that the company has completed the S$205.5 million sale of two healthcare properties to First Real Estate Investment Trust. The two assets consist of Siloam Hospitals Lippo Cikarang and the Mochtar Riady Comprehensive Cancer Centre (MRCC).
First REIT is Singapore’s first healthcare real estate investment trust, and managed by LPKR's fund management arm, Bowsprit Capital Corporation Limited.
Lippo Karawaci will realize a one-time gain of Rp195 billion from the transaction, which will be amortized over 15 years. Under the transaction, Lippo Karawaci sold the Lippo Cikarang property which houses Siloam Hospitals, a subsidiary under a sale and lease back agreement with First REIT.
In addition, LPKR assisted First REIT in their acquisition of a central Jakarta property which houses MRCCC, located in Semanggi, Central Jakarta. The sale achieves LPKR's asset light strategy and empowers it to pursue its hospital expansion plans.
At the same time, the sale further enhances Lippo Karawaci's asset management division as it increases total funds under management by the company to US$1.3 billion.
At the same time, the sale further enhances Lippo Karawaci's asset management division as it increases total funds under management by the company to US$1.3 billion.
This adds momentum to Lippo Karawaci's plans to increase funds under management to US$3 billion within 3 to 5 years and making the corresponding fee income a growing driver of the company growth strategy.
Lippo Karawaci manages two Singapore listed real estate investment trusts (REITS) – First REIT and Lippo-Mapletree Indonesia Retail Trust (LMIR Trust), with total assets under management of S$612.8 million (US$476 million) and S$1.1 billion (US$855 million) respectively, or a combined total of US$1.3 billion.
Both REITS are listed on the Singapore Stock Exchange with combined market capitalization of US$804.4 million. Lippo Karawaci asset management business division consists of its fund management unit and its property management unit. Lippo Karawaci is also a 21.74% owner of First REIT, one of the two REIT's managed by the company.
Both REITS are listed on the Singapore Stock Exchange with combined market capitalization of US$804.4 million. Lippo Karawaci asset management business division consists of its fund management unit and its property management unit. Lippo Karawaci is also a 21.74% owner of First REIT, one of the two REIT's managed by the company.
Ketut Budi Wijaya, LPKR President Director, was upbeat "The transaction, further contributing to the transformation of LPKR from a US$3 billion to a US$8 billion property group.”
Lippo Karawaci is projecting a good strong year ahead in 2011 with total profits of Rp701 billion, up sharply by 33.5% on top of a 24.1% boost in revenues to Rp3.725 trillion.
Profit from ordinary operations to grow by 22.4% inspite of much heavier roll-out expenses of new hospitals and malls development in 2011.
Profit from ordinary operations to grow by 22.4% inspite of much heavier roll-out expenses of new hospitals and malls development in 2011.
The company expects 2011 extraordinary profits to double to Rp150 billion arising from anticipated sales of malls and hospital assets to two LPKR affiliated REITS in Singapore.
The company also today announced a solid final 2010 fourth quarter results forecast on the back of a growing economy, robust residential and township sales, healthcare revenue and higher productivity.
This will bring record net profits and revenues for the full 2010 calendar year ending 31 December 2010 to over Rp525 billion and Rp3 trillion, up 35% and 17% respectively from 2009.
All business divisions of Lippo Karawaci will report satisfactory growth for the full year with exceptional performance in revenues coming from its strategic residential/township and hospitals business divisions. Lippo Karawaci is Indonesia's largest listed property company by total assets, revenues, and net profit, anchored by a large land bank and solid recurring income base.
This will bring record net profits and revenues for the full 2010 calendar year ending 31 December 2010 to over Rp525 billion and Rp3 trillion, up 35% and 17% respectively from 2009.
All business divisions of Lippo Karawaci will report satisfactory growth for the full year with exceptional performance in revenues coming from its strategic residential/township and hospitals business divisions. Lippo Karawaci is Indonesia's largest listed property company by total assets, revenues, and net profit, anchored by a large land bank and solid recurring income base.
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