Frequently Asked Questions
The Kedungu Fund Strategy
All your questions answered
General Information about The Kedungu Fund
What is The Kedungu Fund?
The Kedungu Fund is a real estate investment fund focused on high-growth property investments on Bali’s thriving west coast. The Fund offers a diversified land banking, commercial, and residential property portfolio.
What’s the entry ticket for investing in the fund?
The minimum investment amount is $30,000, providing an accessible entry point into Bali’s property market for individual and institutional investors. However, this will be increased to $70,000 in Q1 2025
What is the investment term of The Kedungu Fund?
The fund has a fixed 5-year term, with all assets liquidated in March 2028. Proceeds from these sales are distributed to investors after liquidation.
How is the fund structured?
The Kedungu Fund is an open-end real estate fund, where investors (Limited Partners or LPs) hold shares in a Singapore-based hold-co entity. This entity owns and controls property acquisitions and developments through an Indonesian subsidiary.
What does it mean that The Kedungu Fund is an open-ended fund?
An open-ended fund allows investors to join at various points rather than just at the fund’s inception, making it more flexible in terms of entry and exit. This structure lets The Kedungu Fund accept new capital contributions, which can then be used to acquire additional assets or expand existing developments. While there may still be guidelines around the timing and minimum investment terms for entry or exit, this flexibility allows investors to participate without being restricted to a single initial funding period.
Why is the fund based in Kedungu?
Kedungu is strategically located in Bali’s western region, a high-growth area due to increased tourism, infrastructure development, and rising real estate demand. The region’s proximity to popular destinations and scenic landscapes makes it ideal for pioneer investors.
Investment Returns and Distribution
What are the expected returns for investors?
The fund has a minimum 8% clawback provision, however on the upside and based on market projections and historical performance. This is the baseline conservative benchmark, with the potential for higher returns through diversified investments estimated at 2-4 X.
How are returns distributed to investors?
Quarterly rental income distributions are made to investors from income-generating properties. At the end of the fund’s 5-year term in March 2028, all assets are liquidated and the remaining proceeds are distributed.
Are dividends reinvested or distributed?
The fund primarily focuses on reinvesting earnings to maximize growth, though a % of opportunistic dividends may be distributed if the investor elects to do so.
When will the fund liquidate its assets?
All assets will be liquidated by March 2028, with final distributions to investors. If delays occur, updates will be provided, and any additional income earned during the extended holding period will continue to benefit investors.
Risk Management and Investor Protection
What measures does the fund take to manage risk?
The fund’s diversified investment strategy mitigates risks by spreading investments across different property types and locations. Additionally, rigorous market research and monitoring support stability and growth.
What protections are in place for investors?
Investor protections include clear ownership rights, regular reporting and audits and legal compliance. The fund’s clawback provision ensures that investors meet the targeted 8% return before management earns performance fees.
How can investors be assured of returns and minimal risk?
By carefully selecting assets, implementing a diversified strategy, and focusing on high-demand areas, the fund aims to reduce risk and deliver stable returns. All investments carry some inherent risks, but the fund’s approach is designed to enhance growth potential.
Property Acquisition and Development Plans
What types of properties do the fund typically invest in?
The fund’s portfolio includes residential, commercial, and hospitality properties, such as villas, and mixed-use commercial and retail spaces in high-demand areas.
What types of land has the fund already acquired, and where?
The fund has secured land in the high-growth region of Kedungu along Bali’s west coast, particularly in commercial areas with significant potential and upcoming infrastructure developments.
What future land acquisitions are planned?
The fund will continue to target regions with strong potential for appreciation, infrastructure improvements, and tourism growth. Investors are updated as new acquisitions are finalized. Click here to see our target investment map
What criteria are used for selecting land and properties?
Land and properties are chosen based on appreciation potential, proximity to new infrastructure, local demand, zoning compliance, and regional development plans.
What kinds of developments are planned for the fund’s properties?
Planned developments include an International School, a shopping Plaza, a Cafe, a Wellness and Health Centre, and Mixed-use Residential, boutique hotels, and commercial spaces that cater to tourism demand. These projects are selected to capitalize on Bali’s growth in tourism and expatriate communities.
What community improvements are underway in areas where the fund holds land?
Key projects include new roadways, utilities expansion, street lighting, Railway links and a new airport in Northern Bali. These developments support the fund’s growth strategy by enhancing property values in the targeted areas.
Financial, Tax and Fee Structure
What fees are associated with investing in the fund?
The fund has a management fee, 2% of assets under management, and a performance fee based on profits. Specific details are disclosed in the offering documents.
How is the fund’s share price determined?
Share prices are based on the fund’s Net Asset Value (NAV), reflecting asset value adjustments. Entry share prices are secured at the time of an investor’s initial investment.
What is the mechanism for valuing different fund assets?
Valuations are based on:
- Cash on Deposit: Checked at fund valuation times.
- Ongoing Construction Contracts: Valued based on supplier billing.
- Bare Lands: Assessed by Fair Market Value (FMV) of acquired properties.
How much tax will I need to pay?
Tax obligations vary by an investor’s country of residence. Investors should consult tax professionals to understand specific tax implications for foreign investment income.
What happens if share numbers increase due to new investments?
Issuing new shares will dilute percentage holdings, but the rising NAV offsets any impact on overall share value as the asset growth increases in alignment.
Future Plans and Investor Options
What is the onboarding process?
The onboarding process for The Kedungu Fund is managed through Sleek, a secure and streamlined platform. Here’s how it works:
- KYC Verification: Investors submit identification and documentation on Sleek to meet Know Your Customer (KYC) requirements, ensuring compliance with regulatory standards.
- Signing Legal Documents: All necessary agreements and legal documents are accessible and can be digitally signed directly on Sleek, making the process efficient and paperless.
- Funds Transfer: Once verification and documents are complete, investors can proceed to transfer their investment funds securely through Sleek.
- Access to Dashboard and Reporting: After onboarding, investors receive access to a personalized dashboard on Sleek. This provides real-time insights, regular performance updates, and access to all fund-related reports.
Using Sleek ensures a seamless, compliant, and transparent onboarding experience, allowing investors to start and manage their investments with ease.
Can investors reinvest in future funds with The Kedungu Fund?
Yes, investors will have options to reinvest in future “Kedungu Funds”. Plans are underway to provide flexibility for reinvesting without incurring penalties in the future.
Is there a lock-up period for my investment?
Yes, invested capital is held until around March 2028 after all land assets are liquidated. During this period, investors can sell their shares to third party or bank to The Kedungu Fund under certain conditions.
How often will I receive updates on my investment’s performance?
Investors receive regular updates, and they can track real-time progress through their investor dashboard.
Corporate Social Responsibility (CSR) and Community Impact
Are there any future CSR projects planned by The Kedungu Fund?
As one of the larger landholders in the Kedungu area, The Kedungu Fund is committed to ensuring that community development aligns with sustainable, eco-friendly, and community-focused principles. We’re able to influence land use and development to create more green spaces, pedestrian walkways, open areas, and public parks, promoting a healthier environment and a better quality of life for the whole community.
What specific projects has The Kedungu Fund funded to improve community infrastructure?
The Kedungu Fund has invested in several community-oriented projects, including:
- Street Lighting: We have installed new street lighting to enhance safety and accessibility at night.
- Shortcut Road: We are planning to construct a new shortcut road to improve connectivity between the two main commercial areas, easing traffic flow and reducing travel time.
- Beach Webcams: Our installation of live webcams on the beach not only promotes the area’s natural beauty but also provides real-time views that support tourism and environmental monitoring.
- Subak Walkways (Green Waterways): We’re campaigning for non development of green walkways that run alongside traditional Balinese “Subak” irrigation systems, encouraging walkability and honoring local agricultural heritage.
- Setback Construction: We maintain a setback and promote the community to not build on main roads for new buildings, reducing noise, enhancing pedestrian spaces, and creating a safer, quieter environment for the community.
How does the fund support community engagement?
We regularly engage with the Kedungu community banjar to understand local needs and priorities. By participating in community meetings and sponsoring local events, The Kedungu Fund aims to create a responsive and collaborative relationship with residents and stakeholders.
What role does The Kedungu Fund play in creating public spaces?
Our land management strategy includes reserving spaces for parks, walkways, and other open areas, which serve as communal gathering places, encourage physical activity, and promote green space preservation. By integrating public spaces into our developments, we’re fostering a more vibrant, connected, and green Kedungu community.
Are there any future CSR projects planned by The Kedungu Fund?
Yes, our upcoming CSR initiatives include:
- Building a School: We are in the early stages of planning a new school that will provide quality education options within the community, benefiting local families and supporting Kedungu’s growth.
- Green Pathways and Parks: Expanding on our current efforts, we are designing new walkable pathways and additional park spaces to enhance Kedungu’s appeal as a sustainable and accessible destination.
How do these projects benefit The Kedungu Fund’s investors?
By improving infrastructure, supporting sustainable practices, and enhancing community well-being, our CSR initiatives not only build goodwill but also add long-term value to our properties and investments. These projects improve the livability and attractiveness of the Kedungu area, which can positively influence property values, rental demand, and the overall success of the fund.
FAQ The Kedungu Fund
What is the primary investment focus of the real estate investment 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.
What types of properties does the fund typically invest in?
The fund typically invests in a mix of properties including residential, commercial, and hospitality sectors such as luxury villas and retail spaces.
How do you source your investment properties?
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.
Kedungu Real Estate, a real estate agency specializing in the Kedungu area and a part of our parent company, Kosong Satu Group, plays a pivotal role in our sourcing process.
How is the fund structured?
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.
How can I invest in the fund?
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.
What is the minimum investment required?
The minimum investment required for our fund is USD40,000, 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.
What are the fees associated with investing in the fund?
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.
How often will I receive updates on the performance of my investment?
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.
What kind of returns can investors typically expect?
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.
Is there a lock-up period for my investment?
Yes, to ensure the stability of the fund and to align with the long-term nature of real estate investments, investors capital is locked up until March 1st, 2028. During this period, investors’ capital is committed and cannot be withdrawn without penalty.
Can I withdraw my investment at any time?
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.
What protections are in place for investors?
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.
To further secure Limited Partners’ interests, we have a Clawback Provision in place.
What is the tax implication for my investment earnings?
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.
Does the fund participate in any sustainable or eco-friendly practices in its developments?
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.
What is the fund's track record for past investments?
Our mother company and fund manager (Omri Ben-Canaan) have a strong track record of earning great returns on past investments. Specific details on past performance can be provided upon request.
In 2023, the fund itself achieved a net return on investment (ROI) of 43.36%.
Who are the key personnel managing the fund?
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.
How can I get in touch with the fund’s management for questions or concerns?
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.
What is the fund's strategy for growth and expansion in the future?
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.
What is the mechanism for valuing the different assets of The Kedungu Fund?
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.
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