The manager of Lippo Malls Indonesia Retail Trust (LMIRT) has reached an agreement with PT Mandiri Cipta Gemilang to acquire the strata title units of Lippo Mall Puri at a revised purchase consideration of 3.5 trillion rupiah ($330.2 million).

PT Mandiri Cipta Gemilang is a wholly-owned subsidiary of PT Lippo Karawaci Tbk, the sponsor of LMIRT.

The lower purchase consideration comes on the back of recently updated revaluations of the mall by Cushman & Wakefield VHS Pte Ltd and Colliers International Consultancy & Valuation (Singapore) Pte Ltd, to account for the impact of Covid-19.

The figure represents a 3.47% discount to the average of the two updated independent valuations, without vendor support, and an even more attractive 9.47% discount when vendor support is taken into consideration.

“The acquisition of Puri Mall, which will become the flagship asset of our portfolio, has been on our cards since early 2019, and is part of LMIR Trust’s asset optimisation strategy as we replace the mature malls that have limited growth potential with high-quality malls that are newer and have high growth potential,” says James Liew, executive director and CEO of the manager.

“The Covid-19 outbreak has highlighted the superior characteristics of Puri Mall, which is part of the premium St. Moritz Jakarta Integrated Development, the largest mixed-use development in West Jakarta, Indonesia. We are confident that the strategic location and positioning of Puri Mall will place it in a good position to contribute positively to our portfolio in the post-Covid-19 environment,” Liew adds.

As at 10.32am, units in LMIRT are trading 0.2 cent lower, or 1.7% down, at 11.6 cents.