CHGS FAQ
WWC - Women Wealth Creation

Hi, anyone heard about this plan before?
I plan to invest on this, but this doesn't come cheap >.<"
Minimum investment is RM5,500
And they guaranteed 8% of returns for the first 3 years.

From 4th year onwards, then it will follow the market price to earn the percentage.


From my understanding, they bought a very large piece of land and divides them into smaller pieces. Then, I buy a quarter acre from them for RM5,500.
They will plant oil palm on the land. So, the first 3 years are where the plantation started. So, no income from selling the fruits yet. They guaranteed 8% of return for the first 3 years.
When reach the 4th year, then I'll earn the money from the sales of the oil palms according to some percentage, where the maximum I can get is 17% (if I'm not wrong).
However, I got a second option, whereas on 4th year, I can sell the land to someone else. I can ask CHGS to sell it back, thus save hassle for me to find own buyer.
This growing scheme only last for 23 years. After the 23 years, I still owned the land. The company will then sell the land and I'll get my share.

So, what you guys think? Safe to invest?
I don't know if oil palm is good, but I knew rubber price are increasing these days.



Credit to DannyOP
* News update, as of 23rd Sept, all of our RM8000 phase plots have been sold out. I would like to thank everyone who have supported CHGS and will continue to update for future releases. The 2nd year of dividends will be released by 14th Feb 2009 at 8% p.a.

This post has been edited by F1meteor: Sep 29 2008, 02:17 PM

I am interested to know more too

But is this backed by government or private? Can it bungkus overnight?

How much is the projected annual rate of return for this investment?
http://www.chgs.com.my/faq.asp#10

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.

It has been known for awhile, basically you are taking part in the plantation, just like the TS explains.
It is not backed by gov, it is a private initiative launched by the company, still it carries some risk same like business.
It is basically a plantation trust.

Yea, my main concern is, if I plan to sell the land on the 4th year, what if no buyer
But, the investment is for sure better than bank's FD for the first 3 years.


Edit-
Refer to his link http://www.chgs.com.my/trustee.asp
I think it's backup by CIMB?

This post has been edited by F1meteor: Oct 31 2007, 12:07 PM

There are couple of similar schemes out there. Generally they are using profit sharing strategy to entice investors to come out with the initial amount for investment to spread the risk out.

Also, I don't think CIMB (BHLB Trustee) is giving any backup. They are only the appointed trustee for the investment. I.e. all the money is being held by them and distribute by them.

This is new.
Can be considered as another form of REIT.

Btw, CHHB bought the land at RM15k/acre.
So by selling them at RM5,500 per 1/4 acre, they instantly recover half of their initial investment.

i guess on top of the initial land cost, they need to recover also the cost for plantation.

Looks good
http://www.chgs.com.my/income_streams.asp

First 3 years, guarantee returns of 8% pa

My worry is whether they are reliable or not. Scared bungkus and cabut with our money

This I'm not too worried. It's the same group for the hotel Palace of the golden horses.

I'm more worried on cannot sell it off >.<"

You can always sell it back to CHGS as stated in their clause right?.....So I guess the main concern is not that.

nop, i can't find this clauses.. they have no obligation to buy back...

---

Added on November 1, 2007, 9:18 pmhowever, the investment is very profitable it seems. at the current CPO priced at above 2k, the minimum return is 12% which is indeed quite high.
if the return is put in the fixed deposit for 3% pa then at the end of 23 years you will get 401% return which is equivalent to 17% pa. and this doesn't add up to the capital appreciation from at market price of the land bank after 23 years. but i dont think it'll appreciate alot, the land isn't really precious...

This post has been edited by keith_hjinhoh: Nov 1 2007, 09:18 PM

if the deal is so good, why dun hv banker/hedge fund finance it?

8% return quite safe..

CH got any experience wif palm oil or not? synergy drive got the world largest plantation but the world most profitable is IOI....not everyone knows how to do plantation....demand for palm oil is reaching peak...now close to 2006, by 2008 end or 2009 china may slow down...

there's some risk associated...

1st. Risk of the company winding up, therefore, no one would be paying the grower. However, the trustee may appoint a new management to takeover the plantation.
2nd. Lack of liquidity, management is not responsible to buyback ur lot. Your money stuck would be stucked untill you can get someone to buy from you. This is wat i feel bad about.
3rd. Long period (23 years)

What i'm curious is just after 23 years what would happened to my initial investment cost 5500? Is it just gone like that? Or somebody is going to buy back from me?

After 23 years, CHGS will sell the land according to the market price and will be divided among the investors.
And I heard the guy telling me that sooner the price will up to RM6000 >.<"

Yea, my main concern is your point 2. If I need money and nobody buys back from me how
Long period is fine, just take it as long time investment. Anyway, low risk = long time right?

Hi,

Just curious, where did you get the info that CHHB bought the land for RM15K/acre?

Thanks.

1) liquidator will b appointed. u will hv haircut said getting back 25% of initial capital, wat said u...not too bad scenaria since u get back 49% [8x3 + 25]

2) with large span of investors..i wonder this will become pasar when things didnt go smoothly..

3) 23years later u might get back 5500..money guarantee np

i was at their exhibition last weekend at queensbay mall, Penang together with property fair there..

basically with 8% income for period 1-3 years i think it's good, it's guarantee .
same with TS, i'm most probably want to invest, if it is secured (i'm newbie in investesmt, as well as CPO kind of things, since they're investing in these plantations)

also said have promotion one night stay at mines hotel for 1 acres purchase eq to 4 lot = RM22k

they sms me just now fow a talk at their BHL menara in penang this weekend. will korek summore info..

that day i saw a promotion at mines international chinese book fair saying 1 lot for 5k so ur 4 lot for 22k seems ripped off to me

entitle for that hotel stay promotion (1 or 2 night cannot remmber) = 1 acre purchase

1 lot = 1/4 acre = 5.5k
4 lot = 1 acre = 22k