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Jakarta Post

Lippo Group launches its first REIT in Indonesia

  • Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, February 14, 2017   /  04:11 pm
Lippo Group launches its first REIT in Indonesia Lippo Group's Bowsprit Asset Management president director Angi Lim (left) and director Meliza Fazariani speak at a press conference about DIRE Bowsprit Commercial and Infrastructure in Jakarta on Tuesday (JP/Anton Hermansyah)

Lippo Group has just launched its first real estate investment trust (REIT) in Indonesia called DIRE Bowsprit Commercial and Infrastructure.

Managed by Lippo Karawaci's subsidiary Bowsprit Asset Management, the REIT had already entered the offering period on Jan. 18 and will end on Feb. 28. The distribution will take place on March 7 and March 8.

It will be listed in the Indonesia Stock Exchange (IDX).

Bowsprit Asset Management president director Angi Lim said the REIT would be offered at Rp 100 (US$0.75 cents) per participation unit for the initial offering and the investor would have to buy in one lot consisting of 100 participation units.

(Read also: How REITs can jump start real estate, infrastructure investment)

"For the initial offering, the minimum purchase is Rp 10 million. We are currently making a roadshow for securities companies and institutional investors. Our target assets under management (AUM) for this REIT is Rp 2.45 trillion," Angi said during a public expose in Jakarta on Tuesday.

The money obtained will be used to acquire four office towers and one distribution center currently managed by Lippo Group -- Rp 393 billion will be for buying Berita Satu Plaza, Rp 511 billion for Menara Matahari, Rp 395 billion for Menara Asia and Rp 448 billion for acquiring the Balaraja Distribution Center.

The remaining Rp 691 billion will be used to buy equity in PT Mitra Wijaya Wisesa, which manages Life Tower in Kuningan, while Rp 12 billion will be allocated for working capital. (bbn)

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