GIC, Indonesia developer in joint venture

Singapore sovereign wealth fund GIC and an Indonesian property developer have formed a joint venture to own and manage South Quarter, an integrated mixed-use complex in Jakarta.

The South Quarter complex occupies 7.2ha in the TB Simatupang corridor in South Jakarta. The location has a direct toll access to the Soekarno-Hatta International Airport and is along the Mass Rapid Transportation lane, which is expected to be completed next year. The TB Simatupang corridor is a popular business hub, where the offices of many national and multinational firms across multiple industries are located, GIC said yesterday.

GIC's partner PT Intiland Development, which will hold 60 per cent of the joint venture, has completed South Quarter Phase I. This comprises three 20-floor office towers with a building floor area of 123,000 sq m and retail facilities occupying 12,500 sq m.

GIC and Intiland will develop South Quarter Phase II, which will have two condo towers and an expected launch date in the fourth quarter this year.

Mr Lee Kok Sun, chief investment officer and regional head of Asia at GIC Real Estate, said: "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.

"We look forward to partnering with Intiland, a leading property developer in Indonesia with a good track record in residential and office assets."

Intiland has developed office towers in Jakarta and Surabaya as well as The Regatta, a seafront luxury condominium in Pluit, North Jakarta.

South Quarter bagged the best office architectural design award at the 2016 South-east Asia Property Awards and attained gold certification in design recognition from the Green Building Council Indonesia, said GIC.

A version of this article appeared in the print edition of The Straits Times on April 04, 2017, with the headline 'GIC, Indonesia developer in joint venture'. Print Edition | Subscribe