Galleries - Photo by NPW Retail

JAKARTA (TheInsiderStories) – NWP Retail, unit of PT City Retail Developments Tbk (IDX: NIRO), announced has completed its latest round of equity fundraising approximately US$200 million, from the Korean Teachers’ Credit Union, the CITIC Securities One-Belt-One-Road (CSOBOR) Fund and Warburg Pincus.

Co-founded by Warburg Pincus and local developer NIRO in 2015, NWP Retail focuses on developing multi-tenanted modern shopping malls across key cities in Indonesia to capitalize on the significant growth in these areas.

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 areas. The platform has expanded its footprint by eight fold in three years, from four seed projects in the beginning.

NWP Retail is led by Timothy Daly, who has 30 years of retail real estate experience across the United States, Asia and Europe and was the former Head of International Development at Simon Property Group, Inc. (NYSE: SPG), the world’s largest retail REIT.

NWP Retail has built a fully-integrated team of 140 staff based in Jakarta, with capabilities spanning all major functions including sourcing, acquisition, development, leasing and asset management. Under Daly’ leadership.

Daly, President Director and CEO of NWP Retail, commented, “We look forward to partnering with the new investors on our journey to build the leading, pre-eminent real estate platform in Indonesia.”

While, Jeffrey Perlman, Managing Director and Head of Southeast Asia of Warburg Pincus, said, “With this round of financing, NWP Retail is well-positioned in a capital constrained environment to further accelerate its outsized growth.”

He added, modern retail continues to remain meaningfully undersupplied with over 70 percent of the top 200 cities still unmalled today.

Indonesia is the fourth most populous country in the world with a population of 260 million, and is the largest economy in Southeast Asia accounting for approximately 40 percent of the region’ gross domestic products (GDP). According to the World Bank, Indonesia has reported consistent real annual GDP growth of over 5 percent over the past five years.

In most of the urban areas that NWP Retail targets, GDP growth has been higher than the national average, and in some cases, as high as 8-10 percent per annum. Additionally, the middle class population is expected to double in the next few years, supporting robust consumption growth.

According to statistics published by the Economist Intelligence Unit, Indonesia has surpassed the GDP per capita threshold of $3,000 in 2010, a key inflection point for institutional level consumption growth.

Rui Zhao, Managing Director of CSOBOR Fund said, “As we anticipate a continued upward trend in retail consumption, we look forward to assisting the company to expand its retail footprint in Indonesia and further into Southeast Asia.”

NWP Retail’ shopping malls can currently be found in West Kalimantan, Central Kalimantan, South Sumatra, West Java and Central Java, while upcoming projects include multiple sites in Kalimantan, Sumatra, Java and Sulawesi.

by Linda Silaen, Email: