Singapore’s sovereign wealth fund GIC is to invest in Indonesian property with local developer Rajawali Group.
The joint venture will invest up to $500m (€400m) in development projects, including office, retail, residential and mixed-use assets, with a focus on Jakarta’s central business district.
The agreement follows a collaboration between GIC and Rajawali to develop a 47-storey, grade-A office tower in Jakarta called Capital Place. The mixed-use development is underway and due to be completed by the end of 2015.
Loh Wai Keong, co-head of Asia at GIC Real Estate, said: “GIC is confident in Indonesia’s long-term growth potential and believe we 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 partnership with reputable local partners with strong track records like Rajawali, who also share our investment values.”
Shirley Tan, CEO of Rajawali, said: “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 groundbreaking projects in Indonesia.”