GIC, Rajawali to invest $652m in Indonesian real estate
SINGAPORE sovereign wealth fund GIC announced yesterday that it had entered into a memorandum of understanding with the Rajawali Group to jointly invest up to US$500 million (S$651.6 million) in equity in property projects in Indonesia, with a focus on Jakarta's Central Business District.
GIC's partnership with one of the largest investment companies in Indonesia will explore opportunities in sectors including office, retail and residential, as well as mixed-use projects.
The joint venture follows a successful collaboration between Rajawali and GIC in the development of a 47-storey International Grade A office tower in Jalan Jenderal Gatot Subroto, in the heart of Jakarta's CBD.
The office tower, now named Capital Place, is part of a mixed-use development that includes The St Regis Jakarta hotel and a retail podium for specialist food-and-beverage outlets. Construction of the mixed-use development is under way and is due to be completed by the end of next year.
According to Shirley Tan, chief executive of Rajawali Property group, "our vision is to build landmarks of a new era - a collection of capital icons that will transform the skylines of Indonesia and withstand the test of time".
"This joint venture is significant as it paves the way for a long-term partnership with GIC and allows Rajawali to develop ground-breaking projects in Indonesia, which we believe is an exciting real-estate investment destination," she said.
Loh Wai Keong, co-head for Asia at GIC Real Estate, said that GIC is confident in Indonesia's long-term growth potential and believes it can create value through the acquisition of assets in prime locations and active asset management.
"An integral part of our investment strategy is to build long-term partnerships with reputable local partners with strong track records like Rajawali, who also share our investment values," he said.
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