Indonesia's Lippo Group to list 3 REITs in Singapore

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SINGAPORE, Nov 12 (Reuters) Indonesian conglomerate Lippo Group <0226.HK> sees Asia properties booming for the next 10 years and plans to list three Real Estate Investment Trusts (REITs) in Singapore over the next two to three years, its president said on Monday.

''I believe Asia is in a long-term bull market, and this will be for at least the next 10 years,'' said Stephen Riady in Singapore, adding that he was particularly bullish about Indonesia's retail property scene, due to a growing middle-income group in the country's key cities.

''These new REITs would most likely be for hotels, offices and for retail malls outside of Indonesia,'' Riady told reporters at a news conference to launch its second Singapore-listed property trust, which invests in Indonesia retail malls.

Riady said the total portfolio size of Lippo's three new REITs will be about billion and will include Lippo's retail malls in China, but he ruled out securitising the group's residential property assets.

''The yield for residential is much lower, and the quality of the earnings is more volatile, so we will focus in the other areas,'' Riady said.

The Lippo Group, which is in the real estate, healthcare, and retailing sectors, has several listed companies including property developer Lippo Karawaci , and retailers PT Matahari Putra Prima and Robinson&Co .

REIT WOES Lippo and Singapore's Mapletree Investments late on Friday priced a S6 million (8 million) initial public offer (IPO) for their joint trust comprising retail malls in Indonesia at S SINGAPORE, Nov 12 (Reuters) Indonesian conglomerate Lippo Group <0226.HK> sees Asia properties booming for the next 10 years and plans to list three Real Estate Investment Trusts (REITs) in Singapore over the next two to three years, its president said on Monday.

''I believe Asia is in a long-term bull market, and this will be for at least the next 10 years,'' said Stephen Riady in Singapore, adding that he was particularly bullish about Indonesia's retail property scene, due to a growing middle-income group in the country's key cities.

''These new REITs would most likely be for hotels, offices and for retail malls outside of Indonesia,'' Riady told reporters at a news conference to launch its second Singapore-listed property trust, which invests in Indonesia retail malls.

Riady said the total portfolio size of Lippo's three new REITs will be about $4 billion and will include Lippo's retail malls in China, but he ruled out securitising the group's residential property assets.

''The yield for residential is much lower, and the quality of the earnings is more volatile, so we will focus in the other areas,'' Riady said.

The Lippo Group, which is in the real estate, healthcare, and retailing sectors, has several listed companies including property developer Lippo Karawaci , and retailers PT Matahari Putra Prima and Robinson&Co .

REIT WOES Lippo and Singapore's Mapletree Investments late on Friday priced a S$516 million ($358 million) initial public offer (IPO) for their joint trust comprising retail malls in Indonesia at S$0.80 per unit, the lower end of an indicative range.

''That was where the demand was. Through the whole of last week the market was falling globally, so the pricing took that into consideration,'' said Mark Ebbinghaus, Executive Director of UBS which is adviser and a lead manager for the IPO.

Shares in the Lippo-Mapletree Indonesia Retail Trust will start trading Nov 19.

Japanese residential trust Saizen REIT tumbled 14 percent in its debut on Friday, while Japan's Asia Pacific Land delayed its $350 million Singapore IPO, citing ''negative market sentiments''.

But Lippo executives say they are unperturbed by prospects of a dip in price, even as the company's First REIT , which listed last December with a portfolio of Indonesian hospitals, fell below its IPO price last week.

''The market goes up and down, but we're confident of the quality of our product, and we're very buoyant with the Indonesian macroeconomics fundamentals,'' said Viven Sitiabudi, chief executive of the Lippo-Mapletree trust manager.

(Reporting by Daryl Loo; editing by Geert De Clercq&Lincoln Feast) REUTERS SI RK1305 .80 per unit, the lower end of an indicative range.

''That was where the demand was. Through the whole of last week the market was falling globally, so the pricing took that into consideration,'' said Mark Ebbinghaus, Executive Director of UBS which is adviser and a lead manager for the IPO.

Shares in the Lippo-Mapletree Indonesia Retail Trust will start trading Nov 19.

Japanese residential trust Saizen REIT tumbled 14 percent in its debut on Friday, while Japan's Asia Pacific Land delayed its 0 million Singapore IPO, citing ''negative market sentiments''.

But Lippo executives say they are unperturbed by prospects of a dip in price, even as the company's First REIT , which listed last December with a portfolio of Indonesian hospitals, fell below its IPO price last week.

''The market goes up and down, but we're confident of the quality of our product, and we're very buoyant with the Indonesian macroeconomics fundamentals,'' said Viven Sitiabudi, chief executive of the Lippo-Mapletree trust manager.

(Reporting by Daryl Loo; editing by Geert De Clercq&Lincoln Feast) REUTERS SI RK1305

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