Khmer Ventures

FAQ

Q

What is the minimum purchase requirement?

Our minimum purchase requirement is now US120,000. This amount changes based on the fund’s current value.

Q

What assets do you have under management?

Khmer Ventures has US$$1,028,685 worth of assets under management as of December, 2018.

Q

How many investors are there?

We have 14 investors from eight different countries including Switzerland, Canada, Germany, China, United Kingdom, and more.

Q

What are the fund's fees?

Our management fee is 2% of the fund’s total appraised value per year. A performance fee of 20% of the fund’s realized return also applies. Our front-end fee for new purchases is 3% of the invested amount. These fees are industry standard and serve to align management’s goals with investors’.

Q

How is Khmer Ventures different than buying property in Cambodia myself?

 We do all the hard work and earn higher returns. We have unique expertise, market insight, local connections, the ability to speak Khmer, and most of our contractors provide us with bulk discounts. Khmer Ventures can renovate, furnish, and even buy real estate in Cambodia at a lower cost than smaller investors.

Q

What are the criteria of the properties you buy?

 Our long-term assets are judged by their yields, ease of rental, and prospects for capital appreciation. We target rental yields of above 10%. Short-term purchases are judged by their estimated profit and ease of sale after renovation.

Q

Who does the renovations?

Khmer Ventures has about 30 different contractors. These include construction teams, electricians, painters, furniture builders, and many more.

Q

Who does the appraisals?

We had IPS Cambodia, the nation’s largest real estate agency, appraise our properties last year. We expect to use their services again this year.

Q

How transparent is Khmer Ventures?

We update the investor section of our website with bank statements and receipts each month. All appraisals are done by independent, reputable third parties. We have operated with the utmost transparency for over two years.

Q

How is the fund structured?

The fund is structured as a Cambodian LLC that directly owns property.

Q

How are investors paid?

 Every 3 months, the fund’s rental income is distributed to our investors. These payments are made by bank transfer.

Q

Do investors need to open a bank account in Cambodia?

Having a local bank account is not necessary. We can send payments to almost any bank account in the world through international wire transfer. With that said, transfer fees can be saved by opening a Cambodian bank account and we can help you do so.

Q

What is the currency in Cambodia? Is there any exchange risk?

Cambodia’s economy is highly dollarized. While the country does have its own currency, the riel, most banking and practically all major transactions are done in U.S. Dollars.

Q

How can investors exit?

Investors can sell or transfer their stake to any third party. The fund is also able to buy back from our investors at a 5% discount. However, there is a two-year lock-in period for new purchases.

Q

Do investors owe any taxes in Cambodia?

The fund’s profit is subject to a flat 14% tax. This is payable by the fund, so our investors don’t personally need to pay tax in Cambodia.

Q

How are new investors brought in? Is there dilution?

Buyers are seamlessly brought in and we have measures that help eliminate dilution. New investors don’t receive payments until the end of the quarter after they purchase. For example, an investor joining Khmer Ventures in February will get their first payment in June. This protects against any dilution by giving us time to allocate new capital. Our goal is to invest new capital in a way that exceeds the fund’s current yields.

Q

Are Cambodians able to invest?

No. We do not sell to Cambodian citizens because of local regulations. No information on this website should be considered a public offering. All potential clients must go through an application process and are screened with regards to their nationality, net worth, risk profile, and more before being offered a chance to invest.

Q

Are Americans able to invest?

Usually. But U.S. persons may be subject to a limit on their purchase amount to comply with U.S. law. No information on this website should be considered a public offering. All potential clients must go through an application process and are screened with regards to their nationality, net worth, risk profile, and more before being offered a chance to invest.

Q

Can I invest through a company?

Yes, you can invest through a corporation based in almost any country.

Q

Can I visit you in Phnom Penh and see the apartments?

Our investors can visit us at any time. Khmer Ventures has a weekend tour for everyone else. The tour takes place twice per year. Please click here to contact us for more details.

Q

Can I see a business plan?

Please click here to contact us for more information.

Q

Can I see the contracts?

Please click here to contact us for more information.