JAKARTA, Indonesia—Nirvana Development, an emerging real estate developer and operator in Indonesia,says an affiliate of Warburg Pincus, will commit $125 million to create a joint venture with the company to build and develop a best-in-class retail platform in Indonesia.

The venture will focus on developing supermarket-anchored shopping malls across second- and third-tier cities in Indonesia to capitalize on the growth potential driven by rapid urbanization, emerging consumption and outsized economic growth in these areas.

"We are excited to partner with Warburg Pincus to further accelerate Nirvana's growth and create one of the leading retail platforms in the country,” said Wilson Effendy, the CEO of Nirvana. “With this plan, we will seek to enhance and expand our retail relationships to further deliver quality service and growth to our tenants and stakeholders. As we seek to scale quickly over the next few years, we look forward to benefiting from the wealth of experience and solid track record of the Warburg Pincus team in building out retail platforms globally and in Asia."