I have land in Indonesia somewhere and am in the process of seeking some private investment via SMSF funding in order to build a resort on. To do this I am seeking to have a PMA Company (Indo Co.) as a 100% subsidiary of an Australian owned Management Co.
The thing is, can I create a unit trust or property trust of which SMSF holders can invest into that has ownership of the Management Co. which in turn Manages the PMA Company (resort business) in Indo?Is this possible for SMSF monies to hold investment in unit trust which has ownership over Aus Management Co which owns PMA Indo Co (ie resort) or is there a better way?
PMA Company translates basically to Limited Liability Company that has foreign ownership
Looking for the Australian SMSF ownership regs mainly. have the Indo side fairly sewn up.
Thanks
You'll probably find that the SMSF rules will greatly restrict your ability to fund development work esp high risk development work unless it formed a very small proportion of the funds under management ie did not elevate the overall risk of the portfolio.
I would be more than likely using Venture Capital to fund the start-up. The momentum generated already among my network may find that there`s room only for companies to invest using this as a philanthropic investment as it`s also building up the local community. The humanitarian dollar if you like. Hopefully!!
Any thoughts on off the plan SMSF input with this type of O/S project? ie; Draft up the site and then approach would be investors.
Thanks for the reply
I don’t have all the facts on your situation, and this can’t be legal; advice, but you seem to be suggesting that you want a kind of public offering in Australia which will be attractive to SMSF to invest in your Indonesian project. I think the problem is not that SMSFs cant invest, but that you can’t offer to SMSFs without a pds and then the marketing.
Our do you have a SMSF for which you are associated? The difficulties there revolve around related trusts, as its your investment and the SMF trustee must be either a constitutional corporation formed in Australia (which can’t own your Hak Pakai in Indonesia) or a set of individuals resident in Australia (you may find that Indonesian domicile is a requirement of individual ownership of Hak Pakai).
I have a SMSF model for Indonesia real estate investment, but utilising specific Warga Indonesia trustees resident in Australia appointed under s17A(3)(b) of the SIS Act.regards
Greg FinlaysonHi
I have 2 large plots of land which I would like to create 2 resorts on.The plots are each over 2 ha, one is hillside, the other is beachfront, both are ideal for a high end resort development – around 15 on each land.
I would like to find out the options to get funding. I thought that the obvious option would be to sell the villas off the plan to have 100% of the development funds covered with unconditional contracts for the banks to lend against.
However, is there a better way to raise funds than this? If I then wanted to get a resort management contract, then it would be difficult, as they only like 1 owner, not multiple.
So what other avenues for raising the development capital are there?
Thanks
Jasper
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