Notes from the Kedungu site visit, spring 2026

Two of us flew into Denpasar for two days in March to walk the Kedungu site with the operator team. Site visits do not always shift our view. This one did, on the margin, in two specific ways.

What we expected

We had read the materials. We had spoken to the team three times. We knew the thesis: a defined parcel, a clear development plan, a sponsor with prior cycles in Bali real estate. On paper, the deal screened well, with the usual caveats around regulatory timing and construction risk in Indonesia.

What we saw

Two things landed differently in person. First, the parcel is closer to a working agricultural community than the materials suggested. That is not a problem in itself, but it shapes the build-out timeline: there is genuine local engagement required, and the sponsor has been doing it for two years before we arrived. We saw signed agreements, we walked the boundary with the community lead, and we left with more confidence in the social-license side of the deal than we walked in with.

Second, the comparable inventory in the immediate area is thinner than the desk-research suggested. A sponsor with a more aggressive thesis would frame that as supply-constrained upside. We read it more conservatively: it means the eventual exit will lean heavily on the operator’s ability to set a market price rather than discover one. That is a real risk that does not show up in a comp set.

What we still want to verify

Three open items came back with us. The permitting cadence in the next 90 days, the actual construction cost build under current input prices, and the operator’s plan if the off-take partner pulls. The team has been responsive on all three and we expect to close out the open items before the quarter ends.

Members who want a deeper read can request the site-visit pack from Lauren. The Kedungu Fund deal page on our deal flow continues to carry our current verdict; this note sits alongside it, not in place of it.