Lippo Limited 0226

[winston]

US$1b for Lippo Korea project
Alicja Lam
Thursday, July 17, 2008

Lippo Limited (0226) said yesterday the total financing amount of its major property project in South Korea - expected to become its new source of income in 2 years - has reached US$1 billion (HK$7.8 billion).

"The amount is ready now and we don't have to raise further funds for that," Lippo executive vice president Wing Chan said yesterday.

The firm said the Woonbook Leisure Complex is the largest property project in South Korea and will be valued at HK$13 billion after construction.

Wing said construction of the project, in Incheon, will start in September and the infrastructure is expected to be completed in 2 years, when it would also be contributing to profit.

Meanwhile, unit Lippo China Resources (0156) intends becoming one of the leading department store operators in China. Lippo managing director and chief executive officer John Lee Luen-wai said the company started business in mainland retail centers at the end of last year, opening Robbinz department stores in Tianjin and Chengdu.

The Tianjin store, with gross floor area of 98,000 square meters, is one of the city's largest retail complexes. Total investment for the Tianjin and Chengdu stores was HK$300 million and HK$400 million, respectively. The company will build three shopping malls in Xuzhou, Yangzhou and Zhenjiang in the next 12 to 18 months.

[eauyong]

Hong Kong Economic Journal recommends.

LIPPO (226) rallies for days
11:06

As being recommended by HKEJ, LIPPO (226) rallies for days. Now it is trading at $2.33, up 12%, with turnover of $18M.

[winston]

not vested

Lippo cleans up in China

by Daisy Wu

Lippo Limited (0226) chief executive John Lee Luen-wai said after a shareholder meeting that the Indonesian property developer has pocketed more than HK$1 billion from selling land reserves in the mainland.

Lee cited frequent policy changes and long construction cycles as reasons for not utilizing its land reserves.

The proceeds have been invested in bonds and exchange traded funds, and used to lower the company's debt ratio to about 10 percent.

Lee said the developer would like to increase regular rental income, mainly through buying Singapore properties where it now holds five million square feet of property with a rental yield of between HK$1billion to HK$1.2 billion this year. But he said a US rate hike US will pressure rentals.

Source: The Standard