Investment Strategy
The Kedungu Fund always looks for opportunities using a strict due diligence process to ensure investments are responsible and beneficial for its valued investors. We concentrate on emerging areas in Bali with a strong potential for future development, low vacancy levels and growing population demographics.
The fund's investment strategy focuses on opportunities in the designated areas, (Kedungu mainly)
with the flexibility to adjust to market fluctuations and capitalize on alternative investment opportunities as they arise.
Key Main Strategies
Kosong Satu Capital always looks for opportunities using a strict due diligence process to ensure investments are responsible and beneficial for its valued investors. We concentrate on emerging areas in Bali with a strong potential for future development, low vacancy levels and growing population demographics. The fund's investment strategy focuses on opportunities in the designated areas, (Kedungu mainly) with the flexibility to adjust to market fluctuations and capitalize on alternative investment opportunities as they arise.
1. Land Banking
Purchase undervalued properties with untapped potential, wait till prices soar and resell.
2. Residential Off-Plan Development
Offering villa designs for pre-sale, leveraging customer funds to drive the building process.
3. Rental Revenue Development
Developing properties to serve as long-term passive income generators through rentals.
1. Land Banking
Bali is a highly sought-after destination for real estate, and as such,
land prices and development have been steadily increasing,
particularly in areas moving westward.
As the island continues to grow in popularity, more and more
investors and developers are looking to take advantage of the
stunning scenery and tropical climate.
The west coast of Bali is particularly desirable due to its proximity to
the famous surf spots and beaches, as well as its relatively
undeveloped state.
As demand continues to rise, we are seeing prices and development
moving westward, making it a great time to invest in this area before
prices rise even further.
2. Residential Off-plan Development
Estimated IRR across the various residential asset classes : +46.6%
The examples below demonstrate the return on investment for two types of assets: the construction of a new villa and the renovation of an existing house.
Both scenarios include the cost of the land for a 25-30 year lease period..
1. HIGH END - 3 BEDROOM VILLA Ex.
2. 2 BEDROOM - LOCAL HOUSE Ex.
3. Rental Revenue Development
(Residential & Commercial)
Our fund is dedicated to the strategic development of both residential and commercial properties. Leveraging the fund's capital, we aim to construct a mix of premium villas and business spaces. Our primary revenue model centers on renting these properties, capitalizing on consistent rental income streams.
As part of our commitment to sustainability, we place a strong emphasis on incorporating eco-friendly practices and technologies into our property development projects.
By minimizing environmental impact, we aim to create a positive contribution to the planet.
Moreover, we actively engage with local stakeholders, taking a community-driven approach to understand their needs and foster social and economic growth.
Through the integration of sustainability and community involvement, we strive to create long-lasting value for both our investors and the communities we serve, ensuring a harmonious and prosperous future for all.
MEDIUM TERM STRATEGY
The Singapore Strategy
The establishment of the Fund in Singapore is a strategic move that is based on the availability of debt financing.
As per the Indonesian banking laws, PMAs owned by foreign entities or individuals face near impossible challenges in securing loans.
Singapore, on the other hand, presents a favorable environment for corporate borrowing, given the country's favorable loan rates.
More affordable financing (=cheaper money)
By incorporating in Singapore and accessing debt financing, the Fund will be able to make more investments with fewer dilution of returns to its investors.
This is a crucial step in achieving the Fund's long-term investment goals and maximizing returns for its stakeholders.
Growing the Investor Base
The initial rounds of fundraising have been restricted to our personal network of friends and family.
As the fund matures, our goal is to expand the investor base to enhance returns.
How does that work?
The reason behind this approach is simple: the more capital the fund has at its disposal, the higher the returns will be.
This is because a larger fund size allows to make larger investments, secure better purchase prices, and allocate more resources towards high-return land development opportunities, as opposed to off-plan.
Real Estate Agent partnerships
A key strategy for the fund's rapid growth is to increase accessibility by partnering with real estate agents in Bali and abroad.
These agents will sell equity in the fund for a commission, attracting a diverse range of investors, regardless of the size of their investment.