Lippo Reit (First Reit) IPO

Published November 22, 2006

IPO WATCH

Lippo Reit draws strong response THE order book for the initial public offering of Indonesian conglomerate Lippo Group's property trust is five times covered, a source close to the deal said yesterday. The source also said that the deal would be priced today. Jakarta-listed Lippo Karawaci, one of the real-estate arms of the Lippo Group, is raising up to $111 million with the listing in Singapore of a property trust. The real estate investment trust, to be called First Reit, will be based on three hospitals and a hotel resort worth $257 million in total, and would be the first Singapore-listed Reit to be based on Indonesian assets. The group is offering 140.4 million units for the property trust at a price range of between $0.68 and $0.79 per unit. Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the deal. Lippo, which is controlled by Indonesia's Riady family, said the trust would eventually own and invest in healthcare assets in Singapore, China, Malaysia, Thailand and Hong Kong. - Reuters Published December 5, 2006 Lippo Reit priced at lower end of indicated range INDONESIA'S Lippo Group is set to raise about $100 million from the sale of units in its Singapore real estate investment trust after pricing it at the lower end of an indicated range. Jakarta-listed Lippo Karawaci, one of the real estate units of conglomerate Lippo Group, is selling 140.4 million units of First Reit at $0.71 each. The property trust is backed by three hospitals and a hotel resort in Indonesia worth $257 million. Lippo had set an indicative price range of between $0.68 and $0.79 per unit. Merrill Lynch and Oversea-Chinese Banking Corp are joint lead managers for the deal. The Lippo deal follows a highly successful $218.4 million offering for CapitaRetail China Trust, based on Chinese shopping centres last week. The China Reit was spun off by Singapore's CapitaLand and was priced at the top end of an indicated range. Lippo, controlled by Indonesia's Riady family, said the trust would eventually own and invest in healthcare assets in Singapore, China, Malaysia, Thailand and Hong Kong. Moody's Investors Service last month lowered the outlook for Lippo Karawaci's B1 corporate family rating to negative from stable, citing the group's weaker than expected financial results for the first nine months of this year. - Reuters