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Top 16 Frequently Asked Questions:
1. What
is CHGS?
2. Where is the location
of the oil palm plantation?
3. How much is a unit
of Grower's plot and minimum investment?
4. What are the maximum
numbers of plots Investors can invest?
5. What is the size of
one Grower's plot?
6. Can foreigner invest
in CHGS?
7. What other fees that
Grower has to pay?
8. Will Grower be getting
the land title?
9. How to determine Growers'
annual returns?
10. How much is the projected annual
rate of return for this investment?
11. What are the income streams
for CHGS?
12. What is the risk profile that
Grower will expose to when investing in CHGS?
13. Is there any transfer option
and how much is the transfer fees?
14. What happen after I have completed
the 23 years tenure ship?
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1. What is CHGS?
CHGS is an
opportunity for the Investor to participate in
the oil palm boom in Malaysia. It allows investors
to own an interest
by investing in the oil palm plantation.
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2. Where is the location of the
oil palm plantation?
Gua Musang,
Kelantan.
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3. How much is a unit of Grower's
plot and minimum investment?
One unit is
equivalent to RM 8,000. The minimum investment
is 1 plot.
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4. What are the maximum numbers
of plots Investors can invest?
Unlimited.
However, subject to availability.
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5. What is the size of one Grower's
plot?
Each Palm
Oil plot size is equivalent to ¼ acre.
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6. Can foreigner invest in CHGS?
Yes.
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7. What other fees that Grower
has to pay?
Besides the
initial investment of the grower plot, investors
only need to pay an annual management fees of
0.1% per plot
from the 4th year onwards.
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8. Will investors be getting the
land title?
No. Growers
will not receive the land title upon investment
because they are actually investing on the interest
of the land.
However, the master title is held by the Trustee
whom also keep a registration of all Growers.
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9. How to determine Growers' annual
returns?
A Grower's
annual return is determined by the average annual
Crude Palm Oil (CPO) prices as published by Malaysian
Palm Oil Board (MPOB) and the harvested yield
of the plantation in Gua Musang, Kelantan.
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10. How much is the projected annual rate
of return for this investment?
The projected
annual return should range between 11% to 15%
on the 4th financial year onwards (based on average
CPO price 2007 @ RM 1950MT/H and min 21 MT/H FFB
output). However, during the first three financial
years, Growers
will be getting a fixed guaranteed annual return
of 8% per year.
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11. What are the income streams for CHGS?
(i) Fixed
Income:
Growers will be getting a fixed rate of return
for three (3) consecutive years.
(ii) Annual
Income:
Growers will be getting a projected rate of return
on annual basis from the 4th investment years
onwards.
(iii) Capital
Appreciation:
After the 23rd years of tenure ship, Growers might
obtain capital appreciation based on the market
valuation of the
oil palm plantation land.
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12. What is the risk profile that Grower will
exposed to when investing in CHGS?
Risk of no
return should the CPO price falls below RM 800/MT.
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13. Is there any transfer option and how much
is the transfer fees?
Growers are
allowed to make transfers to a third party and
the transfer fee is RM 100 per transaction.
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14. What happens after I have completed the
23 years tenure ship?
After the
23rd years of tenure ship, the oil palm plantation
land will be put up on sale. The sales proceed
will be equally
divided to Growers based on the number of plot
owned.
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