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LIPPO MALLS INDONESIA RETAIL TRUST
ANNUAL REPORT 2013
28. CAPITAL COMMITMENTS
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statements are as follows:
Group
2013
2012
Commitments for purchase of plant and equipment and assets enhancements in retail malls
1,462
240
In addition, the Manager has entered into non-binding memorandum of understanding (“MOU”) at Listing Date (19 November
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There has been no progress on this MOU.
29. OPERATING LEASE INCOME COMMITMENTS
At the end of reporting year the total of future minimum lease receivables committed under non-cancellable operating leases
are as follows:
Group
2013
2012
Not later than one year
73,861
92,901
Later than one year and not later than fve years
143,920
209,304
More than fve years
104,783
150,537
Rental income for the year
122,663
108,149
The Trust has no operating lease income commitments at the end of the reporting year.
The Group has entered into commercial property leases for retail malls and spaces. The lease rental income terms are negotiated
for an average term of fve to ten years for anchor tenants and an average of three to fve years for speciality tenants. These
leases are cancellable with conditions and rentals are subject to an escalation clause but the amount of the rent increase is
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(as landlord) and the Master Lessee (as tenant) entered into a Master Lease Agreement, pursuant to which the retail spaces
were leased to the Master Lessee in accordance with the terms and conditions of the Master Lease Agreements. The term of
each of the Master Lease Agreements is for 10 years with an option for the Master Lessee to renew for a further term of 10
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shall be at the then prevailing market rent, as may be agreed by the relevant landlord and the Master Lessee in good faith. If
there is no agreement by the relevant landlord and the Master Lessee on such prevailing market rent, the relevant landlord
and the Master Lessee may refer the determination of the prevailing market rent to an independent property valuer or valuers.
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
31 December 2013