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LIPPO MALLS INDONESIA RETAIL TRUST ANNUAL REPORT 2014
31. OTHER MATTERS (CONT’D)
(ii)
Build, Operate and Transfer (“BOT”) Agreements
Plaza Semanggi
An Indonesian Retail Mall Property Company, PT Primatama Nusa Indah (“PT Primatama”) entered into a BOT
agreement with Yayasan Gedung Veteran Republik Indonesia (“Yayasan Veteran”). PT Primatama has the right
to build, operate and transfer the property for a period of 30 years commencing July 2004. The BOT agreement
can be extended automatically for another 20 years under the same terms and conditions of the current lease
with at least 6 months prior written notice, and to such notice, Yayasan Veteran has to automatically grant its
approval for the extension.
PT Primatama shall pay to Yayasan Veteran annually 5% of its gross income from the lease of premises and
parking spaces (excluding taxes) of each year, commencing from the date of commencement of operations
to the 15th year.
From the 16th year (2020), PT Primatama shall pay Yayasan Veteran 10% of its gross income from the lease
of premises and parking spaces (excluding taxes) for each year.
Bandung Indah Plaza
An Indonesia Retail Mall Property Company, PT Megah Semesta Abadi (“PT Megah”) entered into a BOT
agreement with Perusahaan Daerah (PD) Jasa dan Kepariwisataan Jawa Barat (previously known as PD Kerta
Wisata Jawa Barat) (“PDJK”). PT Megah has been granted the right to build, operate and transfer the property
up to 31 December 2030. If PDJK does not intend to manage the building and facilities, PDJK will give first
option to PT Megah to become a partner of PDJK under a new agreement. PDJK must notify the PT Megah
on whether or not it has the intention to operate the building and facilities. This notification must be provided
at least 6 months prior to expiration of the BOT agreement. BOT agreement cannot be assigned without prior
approval.
PT Megah has the following obligations to PDJK:
(a)
Revenue sharing for shopping centre I for the period from 19 August 1992 to 31 December 2030 at
2% of the rental income of shops and retail per year and shall increase at 0.25% every 4 years. The
increase commenced in May 2008;
(b)
Revenue sharing for shopping centre II for the period 1 May 1994 to 31 December 2030 at 2% of rental
income of shops and retail per year and shall increase at 0.25% every 4 years. The increase commenced
in May 2008;
(c)
5% of net operational profits, commenced in August 1995;
(d)
5% of net income from rental of open areas, promotional spaces and corridors commenced in August
2005;
(e)
Profit sharing with respect to parking spaces from August 2005 at 40% of parking net income after
deducting contribution to Parking Management Institution (Badan Pengelola Perparkiran – “BPP”) and
other expenses, VAT of 10%, interest expense, depreciation of parking facility, with maximum threshold
of the expenses is 76% of rental income, provided that if the VAT no longer prevails or the government
changes the figure of the VAT then the percentage of expenses will be mutually agreed by both parties;
(f)
Both PT Megah and PDJK will share the net rental revenue of the cinema up to August 2020 based on
50% ratio each. Profit share after 2020 will be determined later; and
(g)
The revenue sharing for commercial space is at 2% of the rental income of commercial space per year
and shall increase 0.25% every 4 years. The increase commenced in May 2008.
Notes to the Financial Statements
(Cont’d)
31 December 2014
