A land owner and developer worked hand in hand with
investors to successfully execute a property project
|RM 10 million||3-6 months||100%|
|Gathered with assistance from FundIn||Time used to source capital||acquisition costs secured|
Building For Success
FundIn was approached by a mid-sized Malaysian real estate developer that rolls out attractively priced, well-executed developments in high-potential areas across the country. Its major projects include the Oasis Business Center in Negeri Sembilan, a sprawling modern commercial center, and the Seremban Jaya Business Avenue.
Grabbing a high potential prospect with minimal impact on cash flow
The property developer had identified a land asset in Kundang, a suburban area in Rawang, Selangor. With landbank running out in prime areas within the central Klang Valley area, prominent Malaysian developers had already begun snapping up land assets in Kundang. This was an opportunity that could not be missed.
A Joint Venture with FundIn's Network of Investors
FundIn's team of expert consultants worked with property developer and investors to create a win-win deal, structured to ensure the developer gets maximum value for its property project after strapping away acquisition costs. At the same time, investors are insulated from risk as much as possible. In exchange for coming up with the acquisition funds, investors are rewarded with a 100% return - which is paid through staggered dividends and a lump sum repayment at the end of a set period. Until they receive full repayment, investors control the land title through a holding company. A guarantee provided by the developer gives additional assurance to the project's backers.
100% funded land acquisition costs
By working with FundIn's network of investors, property developer was able to gather the required funds within just six months. Now, it only needs to fork out development costs for the project as and when it decides to begin construction of the project. With an expected rise in property prices across the Klang Valley, property developer is poised to make valuation gains on its asset, on top of the advantage it gets from better cash flow.
"Initially, investors needed extra convincing as Kundang is not a very well-known area, despite the surrounding landbank acquisitions by prominent Malaysian property developers. But after we helped identify the need for a guarantee which was then fulfilled by the developer, they jumped on the opportunity. In a market that can sometimes be very volatile, investors always look for ways to de-risk themselves. Our team tries to identify the best ways to achieve this."
Jackson Ong, Manager, FundIn