GIC buys office tower in heart of Jakarta CBD

PHOTO: GIC buys office tower in heart of Jakarta CBD

Singapore investment company GIC has signed a deal to buy an office tower in the heart of Jakarta's Central Business District for an undisclosed amount.

The 47-storey Grade A building is part of a mixed-use project being built by Greenland Rajawali Utama, a joint venture controlled by Indonesian conglomerate Rajawali Group and Rajawali's property arm.

GIC real-estate Asia co-head Lee Kok Sun said in a statement on Wednesday that demand for quality office space in the Jakarta CBD offers "significant growth opportunities".

"GIC, as a long-term investor, is in a good position to seize these opportunities together with more like-minded partners," he said. GIC made the purchase through an affiliate.

Rajawali Property Group acting chief executive Shirley Tan said in a statement that the deal was "a first step towards a strategic partnership with GIC based on a long-term positive view of Indonesia's real estate market".

She added: "This is our first foray into Jakarta after an absence of more than a decade. We believe the timing is right for such a development."

The project, which will include a six-star St Regis hotel and retail space for food and beverage outlets, is expected to be completed near the end of 2015. The office tower will be certified Green Mark GoldPlus by the Singapore Building and Construction Authority.

GIC has been picking up commercial properties in recent months.

In August, it reportedly bought 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants in London's main financial district.

It paid more than £1.7 billion (S$3.4 billion) to private equity firm Blackstone for the stake, said Bloomberg.

It also jointly bought 101 California Street, an office tower in San Francisco's financial district, for US$910 million (S$1.13 billion) in October last year together with the Hong Kong Monetary Authority, according to Bloomberg.

GIC had 10 per cent of its assets in real estate globally as of March 31, unchanged from the previous year, according to its annual report published in August.

Property topped the list of state funds' investments last year, overtaking commodities and financial services, the London-based Institutional Investor's Sovereign Wealth Centre said in May this year.

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