Waqf private property trust fund as property unlock initiative

Abstract

The abundant of Waqf land (WL) administrated by State Islamic Religion Council (SIRC) are growing over the years unsolved. The location of these WL are strategic and capable for commercial benefits through property development investment project. Yet, the development funds’ constraint restraints SIRC to develop the WL’s potential. This study examine the structure of management of indirect real estate investment (IREI) instrument and carried out a benchmarking comparison analysis to suggest a workable IREI to unlock WL potential. But, concept of Waqf prevents sub-sale of Waqf ownership exchange transaction. While, private property trust fund (PPTF) is a close fund and distribute dividend. This study suggest a conceptual idea Waqf private property trust fund (WPPTF) as mechanism for WL unlock initiative. The structure of management of WPPTF is different since Waqf unit holders whom cash donor would not receive any investment return, instead SIRC as a caretaker of Waqf properties benefit all investment return. The acceleration of Waqf property potential would be useful for investment project development of more frozen WL.