Indonesian property developer PT Intiland Development and GIC Private, Singapore’s sovereign wealth fund, have established a 60:40 joint venture to own and manage the South Quarter complex in Jakarta.
GIC declined to comment on the value of the joint venture.
The mixed-use complex occupies 7.2 hectares in the TB Simatupang corridor in South Jakarta. Intiland has completed South Quarter Phase I which comprises three 20-floor office towers with a building floor area of more than 1.3 million square feet and retail facilities occupying 135,000 square feet.
Together with GIC, Intiland will develop South Quarter Phase II, which comprises two condominium towers and is expected to launch in the fourth quarter of 2017.
“We remain confident in the long-term growth potential of Indonesia, with its favourable demographics and continued structural reforms,” commented Lee Kok Sun, chief investment officer and regional head, Asia for GIC Real Estate.
“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. We look forward to partnering with Intiland, a leading property developer in Indonesia with a good track record in residential and office assets.”
Back in October GIC partnered with Mega Manunggal Property (MMLP), a Jakarta-based developer of logistics properties, to invest in warehouse projects in Indonesia.
The pair planned to invest a combined S$1 billion ($720 million; €660 million) to develop projects totalling 5.4 million square feet of net lettable area in a period of three years, MMLP said in a filing with the Jakarta Stock Exchange at the time.
GIC’s real estate allocation comprised 7 percent of its more than $100 billion portfolio as of March 31, which had a total return of 3.7 percent for the five years to that date, according to its latest investment report.