GIC, Mega Manunggal to Invest S$1 Billion in Warehousesby
Both formed investment company for projects in Indonesia
Singapore’s state fund recently invested in Germany, U.K.
Singapore’s sovereign wealth fund GIC Pte and Indonesian warehouse provider PT Mega Manunggal Property Tbk are spending a total of S$1 billion ($720 million) over the next three years on warehouses in Southeast Asia’s biggest economy.
GIC, through its subsidiary Reco Indolog Pte, and Mega Manunggal formed Mega Khatulistiwa Properti, an investment company which already started construction of three warehouses with over 115,000 square meters of total net leasable area, Mega Manunggal said in a statement to the Jakarta stock exchange on Thursday. The three projects will be completed in 2017.
The S$1 billion will be spent on a total area of 500,000 square meters within the coming three years on projects by GIC and Mega Manunggal, according to the statement.
The transaction adds to recent real-estate deals by GIC, among the world’s biggest property investors. GIC and Dubai-based GSA bought a portfolio of U.K. student housing projects from funds managed by Oaktree Capital Management LP. Singapore’s state fund this month also announced it invested in German student accommodation.