Shares Connected To Lippo Group

LippoLippo Group is a major Indonesian conglomerate founded by Mochtar Riady in 1950. It is one of Asia’s leading diversified conglomerates, controlling billions of dollars of assets with significant investments in retailing, real estate, hospitality and healthcare, among others.

The group has partnered with the who’s who of global institutions such as CVC Capital, Temasek, GIC and Khazanah.

There are a number of businesses connected to Lippo Group that are listed here in our sunny island. Here are some of them.

Overseas Union Enterprise Limited (SGX: LJ3), which is often abbreviated to OUE, owns brand-name hotels such as Mandarin Orchard Singapore, Crowne Plaza Changi Airport Singapore and Marina Mandarin Singapore. It also owns properties such as OUE Bayfront, One Raffles Place and Mandarin Gallery. OUE plans to spin-off Mandarin Orchard Singapore and Mandarin Gallery into a real estate investment trust (REIT) called OUE Hospitality Trust.

OUE is 68% owned by Lippo Limited, which is connected to the parent, Lippo Group. OUE is currently valued at 28 times earnings. The shares yield 2.2%.

The next business with Lippo connections is Auric Pacific Group Limited (SGX: A23). Auric was recently in the news when it offered to gobble up the shares of Food Junction Holdings Limited (SGX: 529) at S$0.255 per share. Auric is an investment holding company with diverse business such as Delifrance, Sunshine Bakeries and Buttercup.

Auric is 49% owned by Stephen Riady, son of Mochtar Riady. The stock is trading at a PE of 10.6 and the dividend yield is 2.4%.

There are two Singapore listed Real Estate Investment Trusts (REIT) linked to Lippo Group. They are First REIT (SGX: AW9U) and Lippo Malls Indonesia Retail Trust (SGX: D5IU).

First REIT is Singapore’s first healthcare REIT with assets on our shores and also in Indonesia and South Korea. Lippo Karawaci, which is linked to Lippo Group, owns a third of the company. Incidentally, Lippo Karawaci is the largest listed property company in Indonesia by market capitalisation, assets and revenue. First REIT is valued at 1.5 times book and the dividend yield is currently 5.7%.

Lippo Malls REIT is the first and only Indonesian retail REIT listed in Singapore. It is 30% owned by Lippo Karawaci. The price-to-book is 0.89 and the dividend yield is around 5.9%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.