CITIC Securities, Warburg Pincus And KTCU Co-Invest $200M In Indonesia’s NWP Retail

NWP Retail, a retail real estate platform in Indonesia with Warburg Pincus as the largest shareholder, today announced that it has completed a US$200 million new round of equity fundraising.

Investors include the Korean Teachers’ Credit Union (KTCU), Warburg Pincus and CITIC Securities One-Belt-One-Road (CSOBOR) Fund, a private equity investment fund of CLSA. CLSA is an international investment subsidiary of Chinese investment bank CITIC Securities.

NWP Retail secured the new investment as Indonesia reported consistent real annual GDP growth of over 5% over the past five years, according to the World Bank.

As the world’s fourth most populous country, Indonesia bears great potentials in real estate consumption when it surpassed the GDP per capita threshold of US$3,000 in 2010 — a key inflection point for institutional level consumption growth, as per statistics published by the Economist Intelligence Unit.

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

NWP Retail is one of Indonesia’s largest real estate platforms with a portfolio of 33 projects covering about 800,000 square meters of gross floor area (GFA). The platform has expanded its footprint eight-fold in three years, from four seed projects to the current 33 projects.

"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," said Jeffrey Perlman, managing director and head of Southeast Asia of Warburg Pincus.

"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," said Rui Zhao, managing director of CSOBOR Fund.