Baker & McKenzie International’s member firms in Indonesia, Hadiputranto, Hadinoto & Partners (“HHP”) and Singapore, Baker & McKenzie.Wong & Leow, acted as counsel to Indonesia conglomerate Rajawali Group in relation to the en-bloc sale of a 47-storey international Grade-A office tower to an affiliate of Government of Singapore Investment Corporation (“GIC”). The Firm advised Rajawali Group from the early procurement stage, to competitive dialogue with bidders, and ultimately, to negotiating and finalizing the contract with GIC.
The subject office tower will comprise part of a mixed-use development project to be developed in the heart of the Jakarta Central Business District in Indonesia. The development will also include a luxury six-star St Regis hotel and a retail podium for specialist food and beverage outlets. The office tower, one of the few international Grade-A buildings in Jakarta, is poised to become the premium address for multi-national corporations, local conglomerates and financial institutions. Construction of the development is underway and is expected to be completed by end of 2015.
This transaction was particularly challenging and innovative, as the conditional sale and purchase agreement had to be uniquely crafted for the parties, both being sophisticated investors. This included terms which allowed parties to satisfy their respective risk management and technical requirements, whilst incorporating complicated price adjustment mechanisms. As this is also the first forward en-bloc sale of a commercial building in Jakarta, this deal now stands at the forefront of the Indonesia property market as the benchmark for future en-bloc sales to follow.
The transaction demonstrates Baker & McKenzie’s ability to tap on the exceptional legal and commercial knowledge across the Firm’s network of offices and member firms to provide both local and cross-border advice to clients across the region. It also highlights the strong collaboration of the teams in both Jakarta and Singapore. The team was comprised of partner Tuti Hadiputranto and associates Putu Raditya Nugraha, Ferry Fajarin Rajagukguk and Dion Alfadya in Jakarta, and principals Lynette Low, Jon Worsfold and associates Alex Tan and Joshua Koh from Singapore.
Commenting on the transaction, Tuti Hadiputranto, said, “It has been a real pleasure to work once again with Rajawali Corporation on another significant transaction, and to be part of the team putting together a landmark deal in the Indonesia commercial, real estate sector. The transaction played to Baker & McKenzie’s strengths – the ability to deliver a seamless service across jurisdictions, and to provide sound but commercially-savvy advice on structuring challenges.”
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