"The only matter that bothers me is that the formula for calculating the dividend is not stated anywhere.
I understand from reading this thread that if the CPO is above RM2,100 for the year, then the dividend would be 12%. This is based on output of 21MT right? As we know, oil palm is an agriculture business, so the output is greatly affected by weather conditions."

There is no formula involved in calculating the dividend for investors.
Basically investors will get 2 kind of dividend back.
One based on CPO price, another is based on the yield of the land.

The CPO is above RM2,100 for the year, the dividend would be 12%
Regardless of the condition of the land. Because investors dividend is based mainly on CPO, and the CPO price is taken from the MPOB (Malaysian Palm Oil Board).

And if the yield of the land for that year is 20-24 metric tonne, then investors will get additional 1%
If its 25-29 metric tonne additional 3%
If 30 metric tonne above 5 %.

So basically u add up the 12% with either 1% / 3% / 5%, so end up highest dividend back is 17%
"My concern is, what if the weather condition is bad for the year, and the output goes below 21MT, or what if the price goes below RM2,100 for some reasons? How is the company going to compensate us? Since the scheme is launched in April 2007, if I decide to join now, would I only receive the guaranteed ROI of 8% for 2 years?"

Every tree is sufficiently covered by insurance. So there is little to worry about the condition of the trees.
If the output goes below 21MT, the u would still get the dividend from the CPO. If the CPO is RM2,100 for that year, you still get 12%. The company still has to honor the signed contractual agreement. Only the yield of the land would be affected, which is still very unlikely because its still above 21MT, u still get additional 1%. Which makes ur return for that year is 13%.

Yes you would only enjoy 2 yrs of guarantee return.

Sorry bro, i mis understood that part.   
Now, if the CPO drops below RM2,100
Investors return will also be affected.

I hav put in a attached picture, to easier explain. Its sometime very confusing trying to explain in words.

I'll gladly go to Klang, i have a few customers there too.   

PM me ur contact no, so we can arrange a place n time to meet.

Cheers!!

Andrew

Justmua,

Thanks.

Okay.  So, the subsequent return is based on lot size or 5.5K versus 6K??

Dreamer

any ppl already invest to CHGS?

Hi ethanfoo, what is your field as a grower consultant in Kuantan, as I need advise on a for-sale 250 acres plot of 4-5 year old trees Oil Palm Plantation near Cukai, and the trees and fruits are not in perfect condition.  I was told that palm trees do not grow well along the coastline.  I was advise not to purchase. Please, if you could advise. Can adding special fertilizers help to improve the conditions? THANKS. By the way, the asking price per acre is about RM30,000.00 leasehold.

Oh...thanks Jordy, in that case, is anyone out there can help out to my enquiries???

It is highly unlikely it will become insolvent as it is a profitable business for palm oil.

The main issue is illiquidity of the investment, in the case one wants to sell, one have to find the buyer on his/her own for the plot bought. Management company hold no obligation on it (although they might help) to buy over from you nor obligation to find the buyer for you.

So if invest in this scheme, it is best interest to prepare to hold until it expired (23 years), in between want to sell, then have to find the buyer.

No doubt it is feasible, especially CPO can chalk up good profit, and the plot price being raised by the management company, then it should have no problem to find potential buyer.

But take it this way, when it is going up time (because of CPO good profit) then a lot of people will be lured into it or interested to own it, so problem just little only.
But when it is going down time, it can be very illiquid when people not interested, you know lah, it is almost identical to stock market, going down time, nobody want to buy even at lower price. So finding a buyer at that particular time period can be very difficult. As those plot is not like listed shares where you can trade, those plot you have to find your own buyer in the street, so if one really need to dispose for the cash, then it can be quite hard. It is more illiquid compared having a property.

Don't get me wrong, not saying it is not good, just remind about the liquidity part and make sure people aware of it.

I heard if those RM5500 wants to withdraw, CHGS will purchase back at RM5500 from you. But they will resell at RM8000. I'm not sure how valid it is, just rumour I heard. Did you sell at RM5500 or RM8000 ?

Also heard rumour it will go up to RM10k per plot. I'm not trying to spread rumour or fake price increase, but just sharing what I heard. I'm not involved or related with CHGS at all or any of their companies.

I'm interested on palm oil itself, and gathering/learning also.

6 plots of Country Height Grower Scheme for sale.

Initial price RM 5000
Last traded market price RM 5500
Offer price RM 5400

Interested, place contact 016-9755888

Just one simple questions here, sorry if it was asked earlier.

Lets say i buy one lot from a seller for RM8000. Does it mean that i only need to wait 2 years more (at 8% annual interest) before the plantation mature and start yielding 11-15% interest? Or every change of owner, we have to wait three years again?

If I am not wrong, you will wait for 2 more years. The important question to ask would be after the appropriate certificate transfer etc... would the company pay you 8% of $8K or 8% of the original purchase price. I would think it would be the latter since this is based on willing buyer & seller.

People with the know please confirm.

I've got confirmation that 8% is based on the original price, if the transaction is based on willing buyer/seller basis without involvement of the mgmt company. If you buy from the mgmt comp, then will be based on prevailing done price.

Am trying to confirm that the subsequent return (after planting stage) is also based on original price, if transaction is based on willing buyer/seller.