GIC in tie-up to develop modern warehouses in Indonesia

An artist's impression of the logistics warehouses by partners GIC Real Estate and  PT Mega Manunggal Property Tbk.
An artist's impression of the logistics warehouses by partners GIC Real Estate and PT Mega Manunggal Property Tbk.PHOTO: GIC

SINGAPORE - Singapore's sovereign wealth fund GIC is making its first venture into Indonesia's logistics industry.

It has entered into a partnership to develop a portfolio of quality logistics warehouses of up to 500,000 sq m net leasable area in Indonesia over the next three years.

Its partner is PT Mega Manunggal Property Tbk (MMP), an Indonesian publicly listed logistics developer. The developments will focus on the Greater Jakarta region and Greater Surabaya.

The partners said in a joint statement on Friday (April 15) that they aim to meet the increasing demand by companies for sophisticated inventory systems which cannot be fulfilled by traditional warehouses.

Said Mr Loh Wai Keong, managing director and co-head Asia, GIC Real Estate: "This is our first investment in Indonesia's logistics sector. We are attracted by the long-term growth of this sector, which is underpinned by the strong consumption of Indonesia's rapidly rising middle class.

"We are pleased to partner MMP, one of Indonesia's top modern logistics players. We believe GIC's knowledge and experience investing in logistics both in Asia as well as other global markets will add value to this partnership."