Warburg Pincus to invest $125m in Indonesia shopping mall JV

According to a release, the JV will focus on developing hypermarket shopping malls across second and third tier cities in Indonesia. The GP has an option to invest up to an additional $75 million.

The JV already has four operating assets and several pipeline projects, which are currently under development. The long-term vision is to create a leading retail platform in Indonesia with institutional-grade malls in cities with sizable population centers and growing disposable incomes.

Headquartered in Jakarta, Nirvana operates businesses across shopping centers, real estate and hotels. Since 2009, the company has developed five mixed-use projects across Java and Kalimantan, which consist Cirebon Super Block in Cirebon, The Pak Solo in Solo, Borneo City Sampit Mall, Borneo Mall in Pangkalan Bun and Borneo City Ketapang Mall in Kalimantan.

"With a rapidly expanding middle class and a nascent modern retail sector outside of Jakarta, there is a meaningful opportunity to contribute to Indonesia's consumption transformation," Jeffrey Perlman, managing director of Warburg Pincus, said in the statement.

The investment comes via Warburg Pincus Private Equity XI, which was closed at $11.2 billion in May 2013. Its previous consumer and retail investments included China's CAR, China Kidswant and Vietnam's Vincom Retail. This latest transaction is expected to close at the beginning of the second quarter this year.

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• Topics
• Southeast Asia
• Real estate
• Consumer
• Indonesia
• Consumer
• Real estate
• Warburg Pincus Asia
• Joint Venture
• Southeast Asia