Fundraising - FEBRUARY 11, 2019

NWP Retail raises $200m for retail fund

by Andrea Zander

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, has completed its latest round of equity fundraising totaling approximately $200 million, from the Korean Teachers' Credit Union, the CITIC Securities One-Belt-One-Road, and Warburg Pincus.

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 to capitalize on the significant growth in these areas being driven by rapid urbanization, emerging middle-class consumption and outsized economic expansion.

“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,” said Timothy Daly, president director and CEO of NWP Retail.

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 (8.6 million square feet) of gross floor area. The platform has expanded its footprint by eight-fold in three years, from four seed projects to 33 projects today.

“Modern retail continues to remain meaningfully undersupplied with over 70 percent 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.

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’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.

Indonesia is the fourth most populous country in the world with a population of 260 million, and it is the largest economy in Southeast Asia accounting for approximately 40 percent of the region’s GDP. According to the World Bank, Indonesia has reported consistent real annual GDP growth of more than 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 to 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, “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.”


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