Frequently Asked Questions
FAQ The Kedungu Fund
Our primary investment focus is on high-quality real estate properties in strategic locations in Kedungu, Bali, with an emphasis on both residential and commercial properties with strong growth potential.
The fund typically invests in a mix of properties including residential, commercial, and hospitality sectors such as luxury villas and retail spaces.
Our investment properties are sourced through a blend of rigorous on-the-ground research, strategic local partnerships, and by utilizing the extensive real estate knowledge of our team.
Our fund is a open-end fund.
Investors, or Limited Partners (LP), become shareholders of a Singapore-based entity, Kedungu Capital Partners Pte Ltd. This entity, in turn, controls an Indonesian foreign-owned capital entity, PT PMA The Kedungu Fund.
The General Partner (GP) role is fulfilled by another Indonesian company, PT PMA Kosong Satu Capital owned by Kosong Satu Group.
Please refer to the Fund Structure page for details.
If you’re interested in investing, please reach out to our investor relations team who will assist you with the process, including necessary due diligence and paperwork. We welcome new investors once a month following our monthly valuation of the Fund.
Typically, we collect investment pledges a few weeks prior to onboarding.
The minimum investment required for our fund is USD35,000, to ensure a focused and committed investor base. The exact amount can vary, so please contact our investor relations team for the most current information.
Our fee structure typically includes a annual management fee and a performance fee. The management fee is a percentage of the total assets under management(typically 2%), while the performance fee is derived from the fund’s profits.
For more detailed information, please refer to this page.
We provide regular updates on the performance of your investment.
Investors can log into their Dashboard to track in almost real time the evolution of their investment.
In 2023, the fund achieved a net return on investment (ROI) of 43.36%. We anticipate maintaining similarly high returns in 2024 and beyond, supported by the ongoing appreciation of land values and the expansion of our business activities.
Yes, there is a lock-up period in place. The fund operates for a total duration of 5 years, concluding in March 2028. During this period, investors’ capital is committed and cannot be withdrawn.
Due to the long-term commitment required for real estate investments, there is a 50% penalty for early withdrawals.
That said, Limited Partners have the option to sell their shares partially or entirely either back to the fund or to a third party. They can determine their preferred sale price.
However, it’s important to be aware that the Fund retains the right of first refusal, meaning it has the option to purchase the shares before they are sold to a third party.
Our fund operates in strict compliance with local regulations. Additionally, we implement rigorous risk management strategies.
The terms of our investment agreements clearly outline investor rights and protections.
The tax implications for your investment earnings depend on your individual circumstances and the jurisdiction in which you are tax-resident.
As the Limited Partnership is based in Singapore there are typically no withholding tax on dividends.
We recommend however you consult with a tax advisor to understand any potential tax liabilities.
Yes, sustainability is integral to our strategy. We aim to incorporate eco-friendly designs and technologies in our properties, reduce energy consumption, and we’re committed to sourcing materials responsibly.
Our fund is managed by a team of seasoned professionals with deep experience in real estate, finance, and local market dynamics. You can find more details about our team here.
You can reach out to our investor relations team via email or phone, as provided on this page. We are committed to maintaining open and transparent communication with our investors.
Our growth strategy involves diversifying our portfolio across different types of properties. We continually assess market conditions and adjust our strategy as necessary to maximize investor returns.
Asset valuation is based on three main types:
– Cash on Deposit: Checked at the time of the fund’s valuation.
– Value of Ongoing Construction/Architecture Contracts: Based on supplier billing.
– Value of Bare Lands: Calculated based on the Fair Market Value of already acquired properties.
How does the increase in share number due to new investments affect the value of already issued shares?
Issuing new shares does lead to a dilution in the percentage held, but as the value of each share increases, it doesn’t impact the overall value.
What is the process for the fund's liquidation and distribution to Limited Partners (LPs) after 5 years?
The fund will start liquidating assets around September 2027. A secondary fund might be created for highly profitable assets, subject to LPs’ votes. The exact distribution process will depend on the nature of the assets and their profitability.
Is there a policy for redistributing dividends, or is the principle to reinvest all generated income?
Funds and potential gains are locked until March 2028, with no regular dividend distributions planned.
However, occasional dividends might be distributed opportunistically after asset sales.