If they sell LMK, they will lose about 25% of their income which means I need to give their yield a 25% discount as well. Thus, their yield will drop to 6.54% which is terrible. However, they will receive cash of about S$360 million, which translate to a $25 million loss due to IDR currency drop against S$. I am quite sure that they will use some of the money to pay off some debt as they acquired some debt to purchase this. Yield will increase but not too sure by how much. My guess is probably at 7.5% which is still not fantastic considering that it is Indonesian-based. And, there are some money which they have raised via rights issue for this which now I am not too sure what they are going to do. They can pay debt, return to investors, or buy a new property.
If they are to sell LMK, as investors, we need to know what they are going to do with the money which is coming in so that we can evaluate whether LMIR is still a good enough investment for us. I hope that they already have plans on what to do with the money which will be beneficial to us investors. Will be watching this closely as I am vested with 30,000 shares.