The Government of Singapore Investment Corporation, better known as GIC, sold its 4.9% stake in high-flying Indonesian real estate firm Pakuwon Jati for almost $90 million on Monday.
The sovereign wealth fund sold 2.36 billion shares at IDR478 per share, at the bottom end of its targeted range and an 8.1% discount to Friday's closing price of IDR520 per share.
The secondary share placement was offered at an indicative price range of between IDR478 to IDR494 per share, according to a term sheet seen by FinanceAsia.
A number of Pakuwon Jati's existing shareholders were quick to place orders as they looked to boost their stakes despite a sizzling runup in the company's valuation, according to a source close to the deal. Shares in the Indonesian property developer rose more than 90% in 2014.
"We've had good progress so far from existing shareholders and previous participants [in Pakuwon Jati placements]," the source told FinanceAsia shortly after books opened after the Indonesian market close on Friday.
Over 30 lines participated in the final book, which was well oversubscribed by the time it closed after 11pm Hong Kong time on Monday.
International and domestic long-only institutional investors made up the bulk of orders but there was decent participation from pensions and hedge funds as well. Final allocations were split evenly between the long-onlys and hedge funds, both international and domestic, the source said.
The clean-up trade enables GIC to start the year by freeing up capital and begin rebalancing its portfolio, the source said.
"[GIC is] one of the most actively involved investors in real estate across the region," he said. "They're looking to sell at the start of the year and have that capital to invest in real estate elsewhere [in Asia]."
In October GIC acquired a chunk of prime office space at Pacific Century Place, the centrally located Tokyo skyscraper, in a deal worth $1.7 billion.
Pakuwon Jati, meanwhile, raised $144.24 million from a private placement last June, after selling 4.81 billion shares at IDR363 each, according to media reports.
About Pakuwon Jati
Shares in Pakuwon Jati are up another 1% so far this year, contrasting favourably with a 0.72% slip in the broader Jakarta Stock Exchange Composite Index. The real estate company is trading at 13 times its 2014 earnings.
Pakuwon Jati's property portfolio is mainly spread across three developments -- Tunjungan City in Surabaya, and Gandaria City and Kota Kasablanka in Jakarta. Office buildings, retail malls and hotels make up the majority of these developments.
It reported solid earnings for the first nine months of 2014, with net income rising to IDR1.34 trillion ($106 million) compared with IDR893.7 billion in the same period of 2013. The property developer also saw net revenues rise to IDR2.72 trillion from IDR2.32 trillion in the nine months to September-end.
