Lippo-Mapletree Indonesia Retail Trust Management Ltd., the Manager of LMIR Trust, is incorporated in Singapore and indirectly 60.0% owned by PT. Lippo Karawaci Tbk, Indonesia’s largest listed property company by market capitalization, and 40.0% owned by Mapletree Capital, a wholly owned subsidiary of Mapletree Investments Pte Ltd (MIPL).

The Manager’s key objectives are to deliver regular and stable distributions to Unitholders and to achieve long-term growth in the NAV per Unit in order to maximise Unitholders’ return.

We plan to achieve our key objectives through the following strategies:

Acquisition growth strategy

Our acquisition growth strategy envisages investments in retail and/or retail-related assets that are in the interests of LMIR Trust’s Unitholders. In achieving this, we anticipate that LMIR Trust will be able to benefit from the ability of our Sponsor, PT. Lippo Karawaci Tbk, to identify and enhance under-valued retail properties and leverage its extensive retail network in Indonesia. LMIR Trust will also benefit from the track record of the Mapletree Group, with its experience in managing yield-accretive assets in various markets such as Mapletree Logistics Trust and other private real estate funds in Asia. The Mapletree Group’s total assets under management as at 31 March 2007 is S$1.7 billion.

Active asset enhancement and management strategy

We intend to implement pro-active measures to enhance returns from existing and future properties in LMIR Trust’s portfolio. Examples of such measures may include addition and alteration works (including re-zoning, tenancy remixing and work carried out for the purpose of expanding size and capacity), leveraging and enhancing the properties’ competitive strengths to optimise rentals and enhancement projects to maintain the competitive positioning of our properties.

Capital and Risk Management Strategy

While LMIR Trust will not incur any borrowings as at the Listing Date, to the extent that LMIR Trust incurs borrowings in the future, the Manager will employ an appropriate mix of debt and equity in the financing of future acquisitions. The Manager has a policy to undertake foreign exchange hedging of the expected distributions of LMIR Trust to insulate against movements in exchange rates. The Trustee, as trustee of LMIR Trust, has entered into a currency hedging arrangement, effective as of the Listing Date, to optimise risk-adjusted returns to the Unitholders.