SINGAPORE/JAKARTA • Sovereign wealth fund GIC and Indonesian property developer Intiland Development have joined hands for shared ownership and development of the first phase of Fifty Seven Promenade - an integrated mixed-use, high-rise project in Jakarta.
The phase will comprise two condominium towers over 1.3ha of land, the two companies said in a press release issued yesterday.
As per the shareholder's agreement signed last Wednesday, an affiliate of GIC will own 33.4 per cent in the joint venture, while Intiland's subsidiary Rahardja Mitra Familia will own 36.63 per cent. The remaining 29.97 per cent will be owned by Indonesian property developer Galang Gema Pradana (Galang).
The transaction remains subject to regulatory approval.
This is the second joint venture between GIC and Intiland, the first being the South Quarter integrated office complex in South Jakarta.
"We are happy to have signed this partnership with GIC as it synergises the strength and experience that both entities possess for property development in the future," Intiland's executive director of capital and investment management, Mr Archied Noto Pradono, stated. He said the partnership with GIC, a global investor with a wide network and good reputation, was important for the project's development.
GIC real estate chief investment officer Lee Kok Sun said: "Intiland has a strong track record in developing high-quality assets. We believe Fifty Seven Promenade, which is well-located in the heart of Jakarta's CBD, will be a significant residential development."
Having worked with Intiland on the South Quarter project, "we are looking forward to more opportunities to work together as we tap the long-term potential of Indonesia's real estate market", Mr Lee added.
Intiland is a leading Indonesian real estate developer with a portfolio that includes residential townships, office towers, high-rise apartments, industrial estates as well as sports and golf club management.
Singapore's GIC has over US$100 billion (S$135 billion) in assets under management around the world.
On Monday, GIC raised its stake in China's investment bank Citic Securities, buying 4.46 million shares at an average price per share of HK$17.0507, according to a filing on the Hong Kong Exchange. This raises GIC's ownership in Citic to 5.05 per cent from the previous 4.85 per cent, Reuters reported.