GIC in joint venture to own, develop mixed-use complex in Jakarta

SINGAPORE (April 3): Singapore sovereign wealth fund GIC announced Monday that it has formed a joint-venture with Indonesian property developer PT Intiland Development Tbk to own and manage an integrated mixed-use complex in Indonesia.

The South Quarter complex occupies 7.2 hectares in the TB Simatupang corridor in South Jakarta – a popular business hub where many multinational companies are located.

Together with GIC, Intiland will develop South Quarter Phase II, which comprises two condominium towers expected to be launched in the fourth quarter of 2017.

Intiland has already completed South Quarter Phase I, comprising three 20-floor office towers with a building floor area of 123,000 sq m and retail facilities occupying 12,500 sq m.

The 60-40 JV follows the signing of the agreement in November 2016. According to a joint statement on Monday, the transaction remains subject to a review by Indonesia’s Commission for the Supervision of Business Competition, KPPU.

“We are pleased to establish this strategic partnership with GIC, a global investment firm. This joint venture will leverage both our strengths and experience developing world-class property projects,” says Intiland’s Executive Director of Capital and Investment, Archied Noto Pradono.

“We remain confident in the long-term growth potential of Indonesia, with its favourable demographics and continued structural reforms. As a long-term value investor, we believe the high-quality and well-located South Quarter mixed-use complex will be an attractive addition to our portfolio,” says Lee Kok Sun, Chief Investment Officer and Regional Head, Asia for GIC Real Estate. — theedgemarkets.com.sg

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