Press Release

PRESS RELEASE

NWP RETAIL FURTHER EXPANDS ITS MARKET LEADING POSITION IN INDONESIA WITH EXPECTED ACQUISITIONS OF TWO SHOPPING MALLS

JAKARTA, 31st Dec 2019 – PT. Nirvana Wastu Pratama (“NWP Retail” or the “Company”), Indonesia’s largest independent retail shopping mall platform, backed by Warburg Pincus, has entered into a conditional sale and purchase agreement with relevant Indonesian subsidiaries of Singapore-listed Lippo Malls Indonesia Retail Trust (“LMIRT”) to acquire two shopping malls for a total purchase price of approximately Rp 1.30 trillion US$ 92 million.

The transaction includes two prime retail assets located in Tier-1 and Tier-2 cities in Indonesia, with an average occupancy of over 90%: Pejaten Village, an 89,157 square meters GFA mall located near the prime Kemang area of Jakarta city, and Binjai Supermall, approximately a 36,000 square meters GFA mall in Binjai, a satellite city of Medan, Indonesia’s largest city outside Java.

Mr. Timothy Daly, President Director and CEO of NWP Retail, “This acquisition represents a milestone in NWP Retail’s rapid expansion. It will strengthen the Company’s presence across key markets in Tier-1 and Tier-2 cities in Indonesia and further expand its market leading position as Indonesia’s largest independent retail shopping mall platform.”

Over the past 4 years, the Company has successfully grown its platform from four seed assets in 2015 to over 40 assets today. This latest transaction will add a gross floor area (“GFA”) of approximately 125,000 square meters to NWP’s portfolio, expanding its current platform to 1.2 million square meters GFA.

Mr. Daly said, “NWP Retail has executed a clear and consistent strategy since its founding, pillared on Indonesia’s strong consumption growth story. Our unique strength lies in the ability to create value through a scalable and well-managed platform and to generate synergies across different retail asset classes. The Company continues to seek high-potential, attractively priced retail acquisitions and development opportunities across key markets in Indonesia”.

Earlier this year, NWP raised nearly US$200 million in its latest round of equity fundraising from the Korean Teachers’ Credit Union (“KTCU”), the CITIC Securities One-Belt-One-Road (“CSOBOR”) Fund and Warburg Pincus. The fundraise was one of the largest ever for a private real estate company in Indonesia, and will enable NWP Retail to accelerate its growth in Indonesia’s capital constrained market.

NWP RETAIL FURTHER EXPANDS ITS MARKET LEADING POSITION IN INDONESIA WITH EXPECTED ACQUISITIONS OF THREE SHOPPING MALLS

JAKARTA, 31st Dec 2019 – PT. Nirvana Wastu Pratama (“NWP Retail” or the “Company”), Indonesia’s largest independent retail shopping mall platform, backed by Warburg Pincus, has entered into three separate conditional sale and purchase agreements to acquire three shopping malls for a total purchase price of approximately Rp 440 billion US$ 31.5 million.

The transaction includes three prime retail assets located in Tier-1 and Tier-2 cities in Indonesia with an average occupancy of over 90%: Central Plaza, an 18,916 square meters GFA mall in Bandar Lampung, one of Indonesia’s largest cities with a population of ~1 million people in South Sumatra, is to be acquired from PT Prima Gerbang Persada; Duta Plaza, a 12,668 square meters GFA mall in the residential stronghold of Denpasar city in Bali, is to be acquired from PT Mega Duta Persada; and Cimanggis Square, a 27,938 square meters GFA mall in Depok, a large city of 2 million people in Greater Jakarta area, is to be acquired from PT Surya Asri Lestari.

Mr. Timothy Daly, President Director and CEO of NWP Retail, “This acquisition represents a milestone in NWP Retail’s rapid expansion. It will strengthen the Company’s presence across key markets in Tier-1 and Tier-2 cities in Indonesia and further expand its market leading position as Indonesia’s largest independent retail shopping mall platform.”

Over the past 4 years, the Company has successfully grown its platform from four seed assets in 2015 to over 40 assets today. This latest transaction will add a gross floor area (“GFA”) of 60,000 square meters to NWP’s portfolio, expanding its current platform to 1.2 million square meters GFA.

Mr. Daly said, “NWP Retail has executed a clear and consistent strategy since its founding, pillared on Indonesia’s strong consumption growth story. Our unique strength lies in the ability to create value through a scalable and well-managed platform and to generate synergies across different retail asset classes. The Company continues to seek high-potential, attractively priced retail acquisitions and development opportunities across key markets in Indonesia”.

Earlier this year, NWP raised nearly US$200 million in its latest round of equity fundraising from the Korean Teachers’ Credit Union (“KTCU”), the CITIC Securities One-Belt-One-Road (“CSOBOR”) Fund and Warburg Pincus. The fundraise was one of the largest ever for a private real estate company in Indonesia, and will enable NWP Retail to accelerate its growth in Indonesia’s capital constrained market.

NWP RETAIL APPOINTS KEVIN KOW AS CHIEF INVESTMENT OFFICER
New Hire Strengthens Leadership Team and Accelerates Retail Real Estate Expansion Across Indonesia

NWP Retail, one of the largest and fastest-growing retail real estate platforms in Indonesia, which includes co-founder Warburg Pincus as its largest shareholder, announced today that Kevin Kow has been appointed as Chief Investment Officer in Indonesia. Kow joins the NWP Retail leadership team after a successful career in real estate private equity in Asia.

Kow was an 11-year stalwart in Morgan Stanley’s Real Estate Investing team, last serving as Head of Singapore, spearheading investment strategies across Southeast Asia. He subsequently joined CLSA Real Estate, where he also served as Head of Singapore and Southeast Asia. Over his career, he has closed over USD 2.5 billion of transactions.

Timothy Daly, President Director and CEO of NWP Retail, stated “I am delighted to welcome Kevin to our leadership team, as we continue to expand our business across the archipelago. Kevin brings a stellar track record of deal making and real estate transactions across Asia Pacific, and we look forward to leveraging Kevin’s experience to enhance our investment strategy and efforts in Indonesia.”

Kow is firm in his conviction. “The investment thesis into Indonesia retail is undeniable – a fast growing middle class and increased consumption in the world’s 4th most populous country. NWP Retail’s portfolio includes Tier 1 assets and extends into Tier 2 and 3 cities, which directly benefit from improved household spending power. These are cities whose next phase of maturity naturally creates a higher demand for brick and mortar retail malls.”

“From a supply perspective, the market is highly fragmented and under-served. Many cities are still without modern mall formats. We have developed new malls and from the swift take up from tenants and shoppers, we have seen proof of the strength of demand,” said Kow.

“While the Indonesian retail potential may be evident, there are few groups capable of unlocking it. NWP Retail’s management team, with Timothy Daly and Melanie Alshab in particular (both former executives at Simon Property Group), have a tremendous track record, not just in retail globally, but also particularly in developing economies,” he said. “On top of that, we’ve got Warburg Pincus, a sophisticated US private equity fund as a sponsor backing NWP Retail in Indonesia. Not only does Warburg Pincus believe in Indonesia and back us with capital, their expertise acts as a catalyst to accelerate the company’s growth trajectory.”

“The partnership between NWP Retail, Warburg Pincus and its shareholders is extremely powerful and I’m excited to join. My role is to lead NWP’s investment strategy across Indonesia and help the firm improve the overall retail landscape,” said Kow.

Since inception, NWP Retail has grown rapidly to become one of Indonesia’s largest real estate platforms, with a portfolio of 33 projects covering approximately 800,000 square meters of gross floor area (“GFA”). The platform has expanded its footprint by eight-fold in three years, from four seed projects to 33 projects today.

NWP Retail Raises US$200 Million from KTCU, CSOBOR Fund and Warburg Pincus
Represents one of the largest fundraises ever for a private real estate company in Indonesia

Jakarta, February 11, 2019 – NWP Retail, one of the largest and fastest-growing retail real estate platforms in Indonesia, which includes co-founder Warburg Pincus as its largest shareholder, announced today that the company has completed its latest round of equity fundraising totaling approximately US$200 million, from the Korean Teachers’ Credit Union (“KTCU”), the CITIC Securities One-Belt-One-Road (“CSOBOR”) Fund and Warburg Pincus.

Co-founded by Warburg Pincus and PT City Retail Developments Tbk (IDX: 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 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 (“GFA”). The platform has expanded its footprint by eight fold in three years, from four seed projects to 33 projects today.

NWP Retail is led by Mr. Timothy Daly, who has 30 years of retail real estate experience across the US, 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 Mr. Daly’s leadership, the company has developed a proven multi-format business model tailored to the needs of specific segments and local markets. NWP Retail has also been at the forefront of addressing a structural shift in consumer preferences towards experiential and lifestyle retail, creating a “new economy” approach to the development of modern retail across Indonesia.

Mr. Timothy Daly, President Director and CEO of NWP Retail, commented, “I would personally like to welcome our new shareholders, KTCU and the CSOBOR Fund. Their investment is a strong validation of our highly differentiated business model, our exceptional growth story and the huge potential ahead. We are experiencing a transformational period for modern retail across Indonesia and NWP Retail is uniquely positioned to be a strong consolidation force in a fragmented and undersupplied market. We look forward to partnering with the new investors on our journey to build the leading, pre-eminent real estate platform in Indonesia.”

Mr. 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. 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. We look forward to continuing to work with Tim Daly and the new investors to deliver on our vision to bring “new economy” modern retail to all corners of Indonesia.”

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% of the region’s GDP. According to the World Bank, Indonesia has reported consistent real annual GDP growth of over 5% over the past 5 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% 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 US$ 3,000 in 2010, a key inflection point for institutional level consumption growth.

Mr. Rui Zhao, Managing Director of CSOBOR Fund said, “CSOBOR Fund seeks strong investment partnerships with reputable local management teams, making NWP Retail a natural fit in Indonesia. 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. As a private equity investment fund of CLSA, we are able to leverage CLSA’s extensive investment expertise and resources.”

A spokesperson of KTCU, commented, “NWP Retail offers a rare opportunity to invest behind the continued growth of the emerging middle class consumer in the fourth most populous country in the world. We have seen this story play out in markets across emerging Asia and we are excited to partner with NWP Retail as it continues to grow and become the market-leading modern retail platform in Indonesia.”

Media Enquiries:

NWP Retail
Ni Putu Puspita Wulandari
+62 878 0962 6305
puspita.wulandari@edelman.com

Warburg Pincus
Mingxia Li
+86 10 5923 2569
Mingxia.li@warburgpincus.com

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