Warburg Pincus-backed NWP Retail buys five Lippo malls for $124m

NWP Retail CEO Tim Daly

NWP Retail, a shopping mall developer backed by Warburg Pincus LLC, will spend $123.5 million buying five Lippo shopping malls in Indonesia.

Two shopping malls will be acquired from the Indonesian units of Singapore-listed Lippo Malls Indonesia Retail Trust for $92 million while another three will be bought for $31.5 million from entities owned by PT Multipolar.

The acquisitions represent “a milestone in NWP Retail’s rapid expansion,” CEO Timothy Daly said in an emailed statement Tuesday. “It will strengthen the company’s presence across key markets in tier 1 and tier 2 cities in Indonesia.”

NWP Retail, a joint venture between Warburg Pincus and PT City Retail Developments, is seeking to capitalize on Indonesia’s burgeoning middle class, who as they accumulate wealth are spending more on consumer goods than ever before. The Southeast Asian nation’s economy is expected to expand about 5% in 2020, faster than neighboring Singapore and Malaysia.

Indonesia “lacks an adequate supply of modern and investment-grade retail stock, as well as national-level developers focused on producing such assets,” according to NWP Retail’s website. “At the same time, tenants at all levels continue to expand throughout the country, which leads to a gap in adequate retail supply.”

NWP Retail was established in 2015 and has a portfolio of over 40 projects spanning the islands of Java, Sumatra and Sulawesi.

February Raising

Two of the malls to be acquired — Pejaten Village in Jakarta and Binjai Supermall in Binjai, a satellite city of Medan — are owned by Lippo Malls Indonesia Retail Trust. It has 30 properties across Indonesia worth around S$1.8 billion ($1.3 billion), according to its website.

The remaining three shopping centers are owned by subsidiaries under Multipolar. They are Central Plaza in Bandar Lampung, Duta Plaza in Bali, and Cimanggis Square in Depok, a city in the greater Jakarta area.

Based on its 2018 annual report, Multipolar’s biggest shareholder is PT Inti Anugerah Pratama, which owns a 78% stake. Inti Anugerah Pratama is also a shareholder of PT Lippo Karawaci, the property arm of Indonesian conglomerate Lippo Group.

Daly said NWP Retail will continue to “seek high-potential, attractively priced retail acquisitions and development opportunities across key markets in Indonesia.”

The group raised almost $200 million in February from the Korean Teachers’ Credit Union, Citic Securities One-Belt-One-Road Fund and Warburg Pincus.

Warburg Pincus has also been investing in Asia’s expanding property sector, leading a consortium that bought a 20% stake in Vietnam mall operator Vincom Retail JSC in 2013. Vincom Retail was Vietnam’s biggest initial public offering in 2017, raising $700 million. That record was broken a year later when Vietnam Technological & Commercial Joint Stock Bank raised $922 million.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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