Griya Garda Garuda Residence

Affordable Housing

Cibitung, West Java

Listed by:

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About Ethis.co

Executive Summary

Introduction to Indonesia

About The Project

Investment Structure and Exit Strategy

Risk Profile

Market Overview

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Investment Offer26

ABOUTETHIS.CO

ABOUTETHIS.CO

CROWD PLATFORM PROPERTY

We match your investment toproperty developers in Indonesia.

INVEST NOW!

3 REASONS TOINVEST

ASSET-BACKEDCampaigns listed on Ethis.co are all asset-backed to protect your capital.

PROFITABLEShare in property development profits. Ethis.co has maintained a consistent return of 12-16% p.a. to the investors in the campaigns listed on the platform.

SOCIAL IMPACTProvide homes for low-income families. Check out our social return calculator to quantify the impact your investment has on low-income families in Indonesia

EXECUTIVESUMMARY

GRIYA GARDA GARUDARESIDENCE

Griya Garda Garuda will provide 244 affordable housing units on a 36880 sqm land for families of the president’s special force army. Units will be sold at varied prices ranging between SGD17,000-SGD25,000. Currently, the project developer has began work on land development and is in the cut & fill process.Your investment with the crowd will fund infrastructure developments which consist of: Sewage development, Land elevation, Paving block road, Electricity installation and the construction of 28 units.

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INTRODUCTION TOINDONESIA

INDONESIA IS A TOP EMERGING MARKET OPPORTUNITY FOR GLOBAL INVESTORS.

The growth in GDP is followed by growth in various sectors, including property development. The soaring residential property index indicates high demand with low supply.

Growth of real gross domestic product (GDP) in the G20 in 3rd quarter 2018

Indonesia Housing Price Index The index increased to 208.22 points in the first quarter of 2019 from 207.35 points in the fourth quarter of 2018. It averaged 160.87 index points from 2006 to 2019, reaching an all-time high of 208.22 points in the first quarter of 2019.

For more information on Why Indonesia, please Click Here.

MARKETOVERVIEW

1 MILLION HOME PROGRAM

In 2018, the Indonesian government successfully implemented the program of 1 million houses development to solve the backlog in houses supply. The government claims that in 2019, the target of house development has hit 1.25 million units. The directorate general of house financing for the Ministry of Public Works and Public Housing stated that the government will consolidate further the stakeholders for this program which consist of Banks, regulators, and property developer associations.

Indonesia runs one of the most successful home-ownership programs in the emerging world, with a three-pronged approach:

● Strict buyer eligibility, price-cap and minimum quality

● Government subsidies to banks to provide financing

● Development fast-tracking with permit concessions

The property sector successfully completed more than 1-Million houses in 2018 for low-income families. Authorities estimate that there is still a shortage of 11 million houses.

AFFORDABLE HOUSING ECOSYSTEM

Public Housing Ministry

Bank

Developer Associations

ProjectDevelopers

Bank & other Financial Institutions

Developmentof Units

EndBuyer

Down payment of 1% from home

buyersSubsidisedhomefinancing

Provides partialfinancing to project

developersConstruction

of units

Encourages subsidised housing development with reduced permit

requirements 1

1a

2a

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Our platform matches you to the government’s highly successful ‘1-million homes’ program to solve the large housing shortage.

Project developers are given easier and faster permit approvals as an incentive.

Banks are given subsidies and targets to provide low-income families with home financing for subsidized housing.

Your investment provides working capital for the development of land and the construction of houses.

Upon successful completion and sale of the housing units, property developers receive the full payment from the bank, from which the investors in the project are paid out.

ABOUTTHE PROJECT

THE PROJECT - GRIYA GARDA GARUDA RESIDENCE

Griya Garda Garuda Residence (GGG) is a project located in Cibitung, Bekasi, west Java. The project is classified as an affordable housing development project with a plan to construct 244 housing units on a 36,880 Sqm land.

The project developer has acquired the majority of necessary permits to execute the project. Currently, the project developer is in the process of waiting for the final approval for the site plan.

Ethis investors’ scope of involvement in this project would be to finance the infrastructural construction consisting of: Sewage development, Paving block development, Temporary fence development, and the development of 28 housing units. PT SRR will secure the repayment to Ethis investors from the sale of 63 units which are put as collateral as well.

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THE PROJECT - GRIYA GARDA GARUDA RESIDENCE

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Currently, the project developer has started land development work which includes the cut & fill process. The project developer has been requested by the Presidential Secret Service Force Association to start progressing in development by the month of October.

PT Satria Rumah Rakyat (PT SRR) will use the Ethis invested money to develop infrastructure and also 28 housing units. The end buyer will be backed by an army cooperative for home ownership savings (TWP) which will finance end buyers. Concurrently, BTN syariah Bekasi Branch will be involved in the financing of the remaining units by November.

Based on the cash flow projection above, from the revenue and expenditure of the project, it can be seen that in the 10th month, the cashflow balance will be positive at approximately IDR 7 billion equivalent to SGD 7 million.

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THE PROJECT - GRIYA GARDA GARUDA RESIDENCE

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The targeted price of the houses per unit is set at the minimum of IDR 175 million equivalent to SGD 17K. There will be no price cap for these housing units, hence the price is open to increase according to the market demand. PT SRR plans to build housing units of different specifications with the maximum price of IDR 247 Million equivalent to SGD 24K.

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PROJECT LOCATION

● A population of more than 250K.

● 8% Growth in the GDP above the National level.

● 40 KM from jakarta the capital city of Indonesia

● Surrounded by Mosques.

Muktiwari, Cibitung, Bekasi, West Java

REPUTABLE AND CREDIBLE PROJECT PARTNER

PT Satria Rumah Rakyat

Track Record/Past Projects

PT Satria Rumah Rakyat is a new company established specifically to execute the Griya Garda Garuda project. The owner of the company is Mr. Valley Noor with experience in executing similar projects with a Gross Development Value of SGD 3,000,000.

Cluster Cijahe Regency

Bogor, West Java

100 Units

GDV : SGD 3 million

REPUTABLE AND CREDIBLE PROJECT PARTNER

Valley Noor MBA (CEO)

Mr. Valley is the CEO of PT SRR. He earned his MBA in Marketing from City University, Washington, USA. Mr. Valley has held various positions in several companies including a senior manager position at PT Dialogue branding. Additionally, Mr. Valley has gained experience as the main developer of Cijahe Legacy project, Bogor managing a 100 housing units and a total GDV of SGD 3 million

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Alek Sandha Haikal (CFO)

Mr. Haikal has vast experience in managing corporate work and project finances. He was trusted as the financial director of PP Apartment Casablanca; handling project management and accounting. Mr. Haikal’s experiences, as the CFO of the company PT Satria, enhances the prospects of executing the project’s fund effectively and efficiently.

PT SRR Team

WHY YOU SHOULD INVEST IN THIS PROJECT?

HOMES FOR THE NEEDYThis project will provide 244 low income families with houses which they will fully own at the end of the project.

STRATEGIC LOCATIONA strategic location which is set in one of the fastest growing areas in west Java.

REPUTABLE PROJECT DEVELOPERA reputable project developer owning the land and the equipment, and ensuring the project performs efficiently

ASSET-BACKEDThe investment is backed by assets worth 150% above the crowdfunding amount. This will protect the investor’s principal.

This project provides the investors with returns higher than the market reaching up to 11% in 10 months time.

PROFITABLE

INVESTMENT STRUCTURE AND

EXIT STRATEGY

INVESTMENTSTRUCTURE

Principle Wakalah LetterThrough a principal

Wakalah letter, investors appoint PT EMI to enter a Musharakah contract with

the PT SRR

2Crowdfunding Wakalah LetterDeveloper appoints Ethis.co as an agent to Crowdfund the needed amount.

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Musharakah ContractPTEMI will enter a Musharakah Joint Operations agreement with PT SRR with proportion 35.8% : 64.2%

4 CollateralPPJB 63 UnitsPost Dated Cheque Personal Guarantee Letter

5 ConstructionPT SRR will commence development with the following projected milestones:• Infrastructure

development: Sewager, Temporary fences, Land Elevation, Paving block development

• Development of 28 units

MUSHARAKAH AGREEMENT

INVESTMENTSTRUCTURE

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Unit PurchaseEnd buyer through Tabungan Wajib perumahan (TWP), a compulsory army’s saving account for housing, will purchase the units

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Developer disburses The money to PT EMIThe developer will disburse the money via standing instruction placed at BTN Syariah after the money from TWP is Banked in. In this stage PT SRR will repurchase Ethis investors’ investment portion at Musharakah

Disbursement to InvestorsPT EMI will disburse the money to investors. 3

EXIT STRATEGY

INVESTMENTSTRUCTURE

1Sub Wakalah

PT SMB appoint developer as an agent to sell the units to end buyers 2

Sales of units on behalf of PT EMI.

Transfer of PPJBPT SMB will move the ownership to the end

buyer

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Money from sale of unitsInvestors transfer their investments to PT SMB bank account in Indonesia.

5Murabahah Wakalah fee 30.91%Progress payment made to the project

developer from PT SMB bank account in Indonesia.

5Payment to Ethis

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Payment of capital plus profitto investors

Upon completion of the construction, the developer

transfers the ownership of the units to PT SMB through PPJB.

Upon the transfer of ownership to PT SMB, PT SMB disburses the

remaining sale price to the developer and concludes the

Istisna’ contract.

MURABAHAH AGREEMENT

RISKPROFILE

RISK OFINVESTMENT

Sale of Units ProjectThe units will be sold at a minimum of IDR 175 Mil (approximately SGD 17,000). The units in the project are classified as affordable housing. The prices of affordable housing units are not capped by the Indonesian government under the “1 Million Home” program and therefore may fluctuate upwards. The main risk of this project is unforeseen delays in the sales of the units to the end-buyers.

Exchange riskInvestors may invest in their respective currencies, which will then be converted to Singapore Dollar (SGD). The SGD amount received will be reflected in the investment contract. We have provided the projected ROI for this project based on our projections for the profits from the project and the current exchange rates. The actual profit you will receive may be slightly higher or lower due to currency fluctuations.

MitigationPT SRR serves a specific market which is the Indonesian army community. Since the breaking-ground ceremony, PT SRR has already secured 233 letters of interest from army individuals. PT SRR is also working cooperatively with TWP (The Institution of Army Savings Account), a compulsory savings account to be used by army individuals to own a house, to provide the down payment and financing for this housing project.

MitigationThe project developer has committed to cover the depreciation of up to 5% of the Indonesian Rupiah (IDR) over the duration of the project.

RISK OFINVESTMENT

Other Risk

Unavoidable circumstances such as recession, political instability, or natural disasters may affect all of us. Indonesia has experienced socio-political stability for more than a decade, and this is expected to continue. There are also regulatory risks that may affect the housing sector, such as stricter conditions imposed on home ownerships or changes in the financial regulations for bank disbursement policies. This is however, highly unlikely, since in recent years the focus has been for the government to relax regulations and facilitate home ownership.

Legal Risk The block plan approval has been obtained by the PT SRR and currently, the approval of the UKL & UPL Permit (Environmental permit) and the site plan is in the process. The submission of necessary documents has been done by PT SRR for their approval by the local authority. The UKL & UPL permit is expected to be fully acquired by early october, while the site plan is expected for approval by November. The army association has instructed PT SRR to make some progress by October, thus, developmental progress can move alongside the permits approvals.

MitigationEthis’ project management company in Indonesia will manage the disbursement of money from investors to the project developer. The first disbursement will be subject to the approval of the UKL & UPL permit, whilst the second disbursement will be subject to the approval of the site plan.

PROJECTCOLLATERAL

The project developer has provided the following as collateral:

● PPJB - Conditional Sale and Purchase certificate of the 63 housing units ● A post-dated cheque higher than the total value of the crowdfunded amount● Personal guarantee from the director of PT SRR

Before the disbursement of the crowdfunded amount to the project developer, the ownership of the units in Griya Garda Garuda Residence will be transferred to PT EMI using "PPJB" (Perjanjian Pengikatan Jual Beli - translated as Conditional Sale and Purchase Agreement). PT EMI will hold on to the PPJB certificates on behalf of Ethis investors until the units are sold to end buyer.

INVESTMENT OFFER

Gross Projected Returns (ROI)

Gross Projected Returns (ROI)

SGD 391,495

10-11 months

SGD 1,000

11% 12%

Ethisc will charge 12.5% of the gross projected returns as a Wakalah Fee (Agency Fee). For further details, please refer to the Principal Wakalah Agreement.

Total Investment Required

Projected Duration

RETAIL CROWD INVESTORS

SILVERINVESTORS

Minimum InvestmentSGD 20,000Minimum Investment

(USD 284,421.12)

INVEST NOW

For our High Net Worth Investors in the Gold and Platinum level, please contact us for returns up to 14% on your investment

DISC

LAIM

ER

This campaign facts and the content herein do not constitute as any financial advice, or solicitation for the purposes of making financial investments or real estate transactions in Indonesia or other territories. Ethis.co is a platform specialising in the match-making of opportunities to those who register themselves as members on the Ethis platform. With regards to these opportunities, the need and onus to do due diligence lies squarely with our members as we do not profess to advise on the same. All dealings and transactions are directly with the businesses, project owners or authorised agents we refer to our members.

In relation to real estate transactions, we state that we are not and do not carry out the business of estate agencies nor do we act as estate agents for our members. Where necessary and relevant, we may match our members to estate agents and professionals in the relevant jurisdiction where there may be potentially good returns. This is part of the services provided by Ethis members in our role as introducers and business matching specialists.

mughees@ethis.co

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