SINGAPORE (Yosefardi) – Homegrown real estate crowd-funding company CoAssets Pte Ltd, which was recently listed on the National Stock Exchange of Australia to form CoAssets Limited has established a strategic Joint Venture (JV) with well-established local development group, PT Javaland Promosia Indonesia.
The move is part of the Company’s strategic plans to expand into the growing Indonesian market.
The Joint Venture structure (CoAssets 49%/Javaland 51%), will see CoAssets as the main operator. Javaland will utilise the CoAssets’ platform for all its property developments in Indonesia, and will facilitate the introduction of new developers to the JV. Operations will commence in Surabaya.
Indonesia is South-East Asia’s largest economy (US$890bn), and PwC recently rated Jakarta as a top 3 destinations for real estate investment in the Asia-Pacific region, and first for development potential.
A major growth opportunity exists for crowd-funding, as land acquisition by developers in Indonesia cannot be funded by domestic bank loans. As a result, local property players are increasingly open to tapping offshore bond and bank loan markets or alternative methods of funding, which is a niche that the Joint Venture seeks to penetrate.