Warburg-backed Indonesian real estate platform NWP Retail raises $200m

Central Park, Jakarta, Indonesia. Photo by Severinus Dewantara on Unsplash

Indonesian real estate platform NWP Retail has raised about $200 million in its latest funding round, it announced on Monday.

The fresh funding comes from new investors Korean Teachers’ Credit Union (KTCU) and the CITIC Securities One-Belt-One-Road (CSOBOR) Fund, as well as from existing shareholder Warburg Pincus.

Founded in 2015 by Warburg Pincus and PT City Retail Developments, NWP Retail focuses on developing multi-tenanted modern shopping malls across key cities in Indonesia to capitalize on the significant growth in these areas being driven by rapid urbanization, emerging middle-class consumption and outsized economic expansion.

Since inception, NWP Retail has grown rapidly to become one of Indonesia’s largest real estate platforms today, with a portfolio of 33 projects covering approximately 800,000 square meters of gross floor area.

Led by president director and CEO Timothy Daly, the company has built a team of 140 staff based in Jakarta, with capabilities spanning all major functions including sourcing, acquisition, development, leasing and asset management.

The new round of financing will enable NWP Retail to further accelerate its growth in a capital constrained market, according to Warburg Pincus managing director and Southeast Asia head Jeffrey Perlman.

“Modern retail continues to remain meaningfully undersupplied with over 70% of the top 200 cities still unmalled today, and NWP Retail has the opportunity to build on its position as the leading independent retail developer, owner and operator in Indonesia,” he said.

Private equity giant Warburg Pincus made its first investment in Indonesia in 2015, investing $125 million to build and develop hypermarket anchored retail malls in Indonesia in a joint venture with local operator Nirvana Development.

Since then, it has made several other investments in Indonesian companies, most notably becoming one of the backers of the country’s ride-hailing giant Go-Jek. One of its most recent deals in the country was as an anchor investor in a $25-million Series B round for tax compliance solutions provider OnlinePajak.

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