SOURCE: CoAssets

CoAssets

October 12, 2015 00:03 ET

CoAssets and PT JavaLand Promosia Indonesia Join Hands to Operate Indonesian's First Crowd-Funding Platform

SINGAPORE--(Marketwired - Oct 12, 2015) - Homegrown real estate crowd-funding company CoAssets Pte Ltd, which was recently listed on the National Stock Exchange of Australia to form CoAssets Limited ("CoAssets" or the "Company") (NSX code: CAX), is pleased to announce that the Company has established a strategic Joint Venture (JV) with well-established local development group, PT Javaland Promosia Indonesia ("Javaland"). 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.

Mr Getty Goh, CEO of CoAssets said, "This Joint Venture is a key step in CoAssets' plans to expand throughout the ASEAN region. Javaland has been successfully operating in Indonesia for a decade, building solid relationships with both the investment community and government departments."

"We are also very fortunate to be working with PT JavaLand Promosia Indonesia, spearheaded by Mr Fernanda Reza Muhammad and Mr Christopher Koh. While Mr Muhammad has a deep and extensive network within the Indonesian business community, having been the Committee Chairman for the Economic Development of Central Indonesia Regional of the Indonesian Chamber of Commerce and Industry from 2009 to 2014, Mr Koh is a successful Singaporean entrepreneur and has businesses in several ASEAN countries, including Indonesia."

"Through this partnership, we are confident that we will be able to rapidly grow our investor and revenue base, by providing users with a greater array of real estate investment opportunities. Our aim is to be the major real estate crowd-funding platform in Asia-Pacific," added Mr Goh.

Potential of Real Estate Crowd-funding in Indonesia 

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.

Mr Muhammad, CEO of Javaland, said, "I believe that Indonesia has a lot of potential and this sector looks set to grow with the recent initiatives introduced by the Government. We contemplated doing a platform ourselves, however we eventually chose to work with CoAssets as they are a listed company and a clear market leader in the area of crowd-funding, especially within the region."

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.

"Prior to this, we launched an off-line marketing campaign to gauge the level of interest, and we managed to accumulate a membership base of about 1,000 from a single event. This is a very encouraging sign, as we have not officially rolled out our marketing initiatives. If this is indicative of the receptiveness, the prospects for crowd-funding look very bright, especially in the market niche that CoAssets Indonesia is operating in," Mr Muhammad added.

Collaboration with Indonesian financial institutions -- Expo for Property, Investing and Crowd-funding (EPIC) Surabaya 2015

To kick start outreach efforts, the Joint Venture will collaborate with Indonesian financial institutions to organise a 2-days Expo for Property, Investing and Crowd-funding (EPIC) in Surabaya on 25 and 26 November 2015. These will be close door trade events, organised for the clients, as well as staff, of these institutions.

Mr Christopher Koh, Director of Javaland said, "We have been working with CoAssets and have seen how effective EPIC is in educating and energizing stakeholders on the potential of crowd-funding. CoAssets has been organizing these series of expos for the last 2 years and we have witnessed the success of crowd-funding through these events. Similarly, we are optimistic that CoAssets Indonesia will generate interest during the two-day event."

"Akin to previous expos, EPIC also gives us an avenue to engage the local financial institutions. For example, DBS Bank was the venue sponsor for EPIC (Singapore) 2014, while MayBank was the title sponsor for EPIC (Singapore) 2015. Similarly, we are currently in deep discussions to work with Indonesian financial institutions for EPIC (Surabaya) 2015 and hopefully that will translate into a long-term working relationship with these entities."

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From left to right: Mr. Fernanda Reza Muhammad, Director of PT JavaLand Promosia Indonesia, Mr. Christopher Koh, Director of PT JavaLand Promosia Indonesia, Komang Derana (PT Satya Indosin Laksana), Dr Seh Huan Kiat, CTO of CoAssets, Mr Getty Goh, CEO of CoAssets
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