IN LESS than two years, Indonesia's Lippo Group has become a juggernaut among property players in Singapore, spending close to $2 billion to snap up prime assets.
Its buying spree, which started with the August 2004 purchase of a substantial interest in 78 Shenton Way - now Lippo Centre - for $151 million, has since gone beyond office blocks to retail and high-end residential property.
A Straits Times back-of-the-envelope tally shows that the group, controlled by the Riady family and operator of Indonesia's largest retailer Matahari, has sunk more than $1.8 billion into Singapore, either in its own name or through linked vehicles.
This includes the estimated $600 million it is paying for 55 per cent of Overseas Union Enterprise (OUE) in a 60:40 joint venture with Malaysian tycoon Ananda Krishnan.
Once the mandatory general offer for the rest of OUE is completed, Lippo's shopping bill will cross the $2.3 billion mark.
And that is not even taking into account the eye-popping $3 billion or more in aggregate it had placed on the table for mega projects such as the Business and Financial Centre and the Orchard Turn and Gluttons Square sites.
Lippo lost the bids for these projects but is expected to be a strong contender for Somerset Central next to Specialists' Shopping Centre. The tender closes in August.
But even discounting its unsuccessful bids and those in waiting, Lippo has built up a formidable portfolio, industry watchers said.
In a high-profile deal last month, for instance, the group paid OCBC Bank $203 million for a 29.9 per cent stake in Robinson.
In the same month, through Lippo Karawaci, it bought a freehold site on Kim Seng Road from OCBC for about $330 million.
Is there more to come? Deputy chairman Stephen Riady did not rule that out but would not reveal how much more the group was prepared to stump up. 'There is no specific budget. If there is a good asset we like, we will look at it,' he said.
Property experts said it was anybody's guess just how deep Lippo's pockets are, but they did note that it seemed to favour prime Orchard Road or Central Business District properties.
The rare exceptions include a 50:50 joint venture with CapitaLand to buy a 99-year site near Redhill MRT Station for almost $180 million last November.
'They are sharp and have been reading the market for hot trends,' said Knight Frank director of consultancy and research Nicholas Mak.
Mr Riady, when asked if the group would expand its presence beyond the central areas, said: 'Generally, no. We will look only at the prime districts of nine, 10 and 11. There is more potential for capital value, for appreciation.'
kelvwong@sph.com.sg
Buying spree
RESIDENTIAL PROPERTY
Newton One, formerly Newton Heights: Paid $60 million, including a parcel next to the freehold site which was sold collectively for $43.6 million in February last year.
RiverGate condo: A fund managed by Lippo-controlled Ferrell Asset Management paid $187 million for 100 units (80 in April last year and 20 more in October) in the CapitaLand and Hwa Hong project facing the Singapore River.
Redhill site: Paid $90 million as part of a 50:50 joint venture with CapitaLand for the 99-year site near Redhill MRT. That sold for almost $180 million in November.
Bukit Timah Mansions: Lippo-controlled Auric Pacific paid $40 million ($15.4 million collective sale plus adjacent parcel) in December.
Kim Seng Road site: Lippo Karawaci paid OCBC Bank $329.1 million for the freehold site last month.
COMMERCIAL (RETAIL/OFFICE)
78 Shenton Way (now Lippo Centre): Bought a substantial interest in the CBD office block in August 2004 for $151 million from MCL Land, through Ferrell Realty.
79 Anson Road: Paid $95 million for a 55 per cent stake in the freehold office block from Pramerica Asia in January.
Food Junction: A unit of Auric Pacific paid $70 million for a 29.9 per cent stake in the food court operator in January.
One Phillip Street: Auric Pacific bought back the 999-year office building in Raffles Place from the Kewalram Group in February at about half the $76.8 million that Kewalram paid Lippo for it in early 1996.
Robinson & Co: A unit of Auric Pacific paid $203 million for a 29.9 per cent stake in the retailer from OCBC last month.
OUE: Paid about $600 million, as part of a 60:40 joint venture for a 55 per cent stake in OUE from United Overseas Bank this month. This will come up to $1.08 billion, once a mandatory general offer for the rest of OUE is completed.
