Backed by regulated asset management institutions Ruifeng Wealth Management, Tembusu Partners and Trigger Asset Management, former PropertyGuru executives commence fundraise efforts for maiden private equity fund of USD 50 million for its inaugural MilikiRumah Rent-To-Own Fund 1 with an intended first close of USD 10 million.
The company, MilikiRumah, was founded by former PropertyGuru executives Winston Lee, Marine Novita, and Lau Xin Yuan. Well-known investment firms like Ruifeng Wealth Management, Tembusu Partners, and Trigger Asset Management support it. MilikiRumah also has backing from angel investors, including PropertyGuru co-founder Jani Rautiainen and Tan Tee Khoon, Singapore country head for PropertyGuru.
MilikiRumah Rent-To-Own Fund 1 is a four-year investment fund that aims to give its investors a 20% return. The fund focuses on building residential properties that will generate income and be occupied by end users. These properties will be located in four areas of Greater Jakarta, which have seen strong growth in property values over time.
The fund is looking for investors such as family offices, private equity firms, charitable organizations, and financial backers from Singapore and other major global financial centers.
MilikiRumah is owned and run by Rightkey Capital Pte Ltd, a company based in Singapore. It operates through its subsidiary in Indonesia, PT Miliki Rumah Indonesia, which does business as MilikiRumah.
Limited partners have the chance to help make finance more accessible to people in Indonesia who don’t have traditional banking services. This can create a more financially inclusive society and help more people achieve homeownership, acting as an essential step toward social equality.
The money from the fund will be used in a partnership between MilikiRumah and property developers. The joint venture company will own the land and property.
Investors in the MilikiRumah Rent-To-Own Fund 1 can make payments in US dollars, Singapore dollars, or Indonesian rupiah. However, the returns for investors will be given in Indonesian rupiah.
The firm’s unique rent-to-own program provides fair access to alternative financing options for people in Indonesia who don’t have access to traditional banking services.
They mainly consist of people who don’t have a regular income and can’t pass the usual bank checks because they don’t have a history of making consistent payments. As a result, they can’t get a bank loan to buy a home.
MilikiRumah’s rent-to-own program addresses Indonesia’s ongoing housing shortage by helping people build a reliable payment history. This way, they can eventually qualify for bank loans to buy a home, something that wasn’t possible for many people in Indonesia who don’t have access to traditional banking.
The money from the MilikiRumah Rent-To-Own Fund 1 is used to build houses made to order in partnership with local real estate developers.
The ownership of the houses is shared between MilikiRumah and the local real estate developer(s) they partner with.
Once a house is finished, MilikiRumah gives the keys to a qualified person who doesn’t have access to traditional banking. They will start making monthly payments into a bank account set up by MilikiRumah with the help of a local bank.
MilikiRumah works with local real estate developers and landowners to build houses that will eventually be owned by people in Indonesia who don’t have access to traditional banking.
“In undertaking our ambitious slate of national initiatives to grant homeownership to Indonesia’s underbanked, MilikiRumah, in fulfilling its core mandate of being a social impact PropTech company, uplifts homeownership accessibility opportunities to Indonesia’s underbanked as an effective and significant social equalizer,” said Winston Lee, MilikiRumah Co-founder, and Chief Executive Officer.
Read more- Investigate VC Launches $500M Global Fund Series
