$50 M maiden private equity fundraise launched by proptech firm MilikiRumah
MilikiRumah, a social impact PropTech company with a presence in Singapore and Indonesia, announced on Monday that it has raised $50 million in private equity for its first MilikiRumah Rent-To-Own Fund 1 with a $10 million first close.
According to the company’s statement, MilikiRumah was founded by Lau Xin Yuan, former PropertyGuru executives Winston Lee and Marine Novita, and regulated asset management firms Ruifeng Wealth Management, Tembusu Partners, and Trigger Asset Management. Angel investors, including PropertyGuru co-founder Jani Rautiainen and Singapore country head Tan Tee Khoon, also supported the venture.
With a four-year closed-end fund lifecycle and a 20 percent internal rate of return target for its limited partners, MilikiRumah Rent-To-Own Fund 1 aims to build core income-generating, end-user-occupied residential real estate assets in four Greater Jakartan municipalities that have historically seen significant asset value growth.
Family offices, private equity firms, philanthropic foundations, and financiers from Singapore and highly developed gateway economic centers are anticipated to be among the targeted participating limited partners.
Rightkey Capital Pte Ltd, a Singapore-registered company that operates PT Miliki Rumah Indonesia as MilikiRumah, is the owner and operator of MilikiRumah.
Limited partners are given the chance to provide financial accessibility to create a financially inclusive society and eventually homeownership to Indonesia’s underbanked as a social equalizer imperative, with a focus on fostering positive social impact.
With land and property ownership held under the joint venture entity, the kitty’s capital will be used to fund the joint venture between MilikiRumah and the property developer or developers.
Returns to limited partners are paid in Indonesian rupiah, while capital calls to MilikiRumah Rent-To-Own Fund 1 are made in US dollars, Singapore dollars, or Indonesian rupiah.
The company’s exclusive rent-to-own program gives Indonesia’s underbanked people fair access to alternative financing options.
They consist mostly of non-fixed income earners who fail risk assessments by traditional financial institutions because they lack a track record of making payments and, as a result, are unable to obtain a bank loan for the purchase of a home.
By giving consumers the opportunity to establish a track record of making payments, MilikiRumah’s rent-to-own program aims to address Indonesia’s ongoing national problem of a lack of homeowners by eventually making institutional mortgage loans available to the country’s underbanked.
MilikiRumah works with regional real estate developers to build to order landed homes using the capital gains from MilikiRumah Rent-To-Own Fund 1.
MilikiRumah and a local real estate developer partner jointly own the title deed to the aforementioned landed houses.
When each landed home is finished, MilikiRumah gives the keys to an eligible underbanked customer who will start making monthly installment payments into a bank account the company, working with a nearby bank, has established.
MilikiRumah constructs homes by collaborating with regional real estate developers and freehold land banks to build landed homes that Indonesia’s underbanked can eventually own.
First of all, the company gives underbanked people access to help them work toward and eventually become homeowners.
