GIC to invest $260m in Indonesian theatre chain
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GIC to invest $260m in Indonesian theatre chain

An employee of Cinema 21 Group carries snack and drinks to sell inside a theatre at Djakarta Theater in Jakarta on Feb 18, 2016. (Reuters photo)
An employee of Cinema 21 Group carries snack and drinks to sell inside a theatre at Djakarta Theater in Jakarta on Feb 18, 2016. (Reuters photo)

SINGAPORE - GIC Pte, Singapore’s sovereign wealth fund, agreed to partner with an Indonesian cinema operator by investing 3.5 trillion rupiah ($260 million), to help expand the theatre chain across the country.

PT Nusantara Sejahtera Raya, which operates the Cinema 21, Cinema XXI and The Premiere brands in Indonesia, has entered into a strategic partnership with GIC, the companies said in a joint statement on Monday.

The company operates 157 cinemas across 36 cities in Indonesia, Nusantara Sejahtera Raya said in the statement.

This is GIC’s latest investment in the Southeast Asian nation, after it said in October that it would team with an Indonesian warehouse provider, PT Mega Manunggal Property Tbk, to invest in warehouses in the nation.

GIC has been seeking to boost returns after warning that record-low interest rates and subdued global growth will weigh on investment performance in the coming decade.

The fund in July said a key measure of returns fell to 4% in the 20-year period to March 31, from 4.9% in the period ended March 2015, as global stock markets posted lacklustre performance and bond returns tumbled.

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