Singapore sovereign wealth fund GIC announced on Tuesday that it had entered into a memorandum of understanding with the Rajawali Group to jointly invest up to US$500 million (S$651.40 million) in equity in property projects in Indonesia, with a focus on Jakarta's central business district.

GIC's partnership with one of the largest investment companies in Indonesia will explore opportunities in sectors including office, retail, residential as well as mixed-use projects.

The joint venture follows a successful collaboration between Rajawali and GIC in the development of a 47-storey International Grade A office tower on Jalan Jenderal Gatot Subroto, in the heart of Jakarta's Central Business District. The office tower, now named Capital Place, is part of a mixed-use development, which includes the first all-suite luxury The St. Regis Jakarta hotel and a retail podium for specialist food and beverage outlets. Construction of the mixed-use development is underway and is due to be completed by end 2015.

According to Shirley Tan, CEO, Rajawali Property group, "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, which we believe is an exciting real estate investment destination."

Loh Wai Keong, Co-Head, Asia, GIC Real Estate, commented, "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."