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

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...

hi guys...din expect to see quick reply.
yeah i read through thread, and i notice most of the concern is about the exit plan.

basically i believe most of ya read the agreement and prospectus which can be freely downloaded from our website in pdf format

www.chgs.com.my
------------------------------------------------------------------------------------------------------------------------
there is no clause that d company will buy back, but has the first option to buy back, if you choose to do a transfer in the future. And also in the agreement the company is not forced to buy back....which makes things quite complicated sometime. Lawyer's fault...like to put in bombastic words which hard to understand.
------------------------------------------------------------------------------------------------------------------------

a few options to make it easy to understand

1) the company will buy back from you, if you choose to release at par value / purchase price.

2) u hav to hold a minimum of 12mths upon ur investment date before u can do any transaction.

3) investors are free to use the company website to publish their lots for sale (Free Of Charge), that space is still under construction.

4) any transaction / transfer hav to go through the company, which in another point of view, has control over every transaction, to prevent abuses and to protect genuine investors.

mmm bro, this is a long term low risk investment plan.
we are hoping everyone will look this as an alternative to the bank's FD.
because on the long run, the yield is better and stable, because of the rising demand of oil palm.

normally we all concern bout the exit part of it. but on the 4th year and above, if you are getting 12% return and mayb more, would u want to sell? most ppl wont think of doing that. because u cant find a real good stable return out there.

so wat i always tell my customer is, if u really want to sell, pls look for me. i'll find buyers for you. but if u would release at the cost price, everyone would want to buy from u, because of the better returns after the 4th year.

if you think bout this ... you know wat u will do after tat. but arent most of us always think that, what if rite?
if you calculate on the 4th year, you already earn 8% for 3 yrs which makes to 24% in total.
if you want to sell, u can sell per certificate, because each plot holds one certificate.
so 4 plots will hav 4 certificate.

u can sell piece by piece which is not hard to sell, even i might consider taking ur plot in future.
if we can wait till maturity date, meaning after 23 yrs. u dun hav to find buyer, the trustee and management will do it for you.
and you get ur capital + capital appreciation.

i hope i answer ur question, feel free to ask any....dun worry its my duty anyway.

in the agreement, page 9
clause 8.2 Notwithstanding clause 6.4 above, in the event the Grower intends to sell/assign/transfer a Gower plot, such grower must first obtain the written consent from the management company who reserve the right to refusal in the respect of such sale/assignment/transfer

this clause state that the company wants to protect the market, management has a control, and to also protect genuine investors.

if you were to release at a terrible price, or spoil the market, company can act quickly to prevent tat from happening.
the website space its not in the agreement, but u can ask every consultant we are told from tan sri himself and the marketing company itself, that investors can later put their plot on website and its FOC.
all interested buyers will put their attention there.

Can you pin point to us which phrase in the contract stated that the management will buy back at par/ search for buyer on behalf of the investor?

dun worry bro, i meet this kind of thing every single day.
im used to it. yeah i understand.
the risk is yeah, at the CPO price. but past few mths when im sellin this, everyone is concern bout the CPO price will drop. but nowdays, tat not the matter anymore. because CPO price can achieve 4000, currently its around 3000++.
i hav even some directors tellin me it can achieve 5000, which in my personal opinion is quite hard.

my opinion is this, CPO will come down at a stable value, around 2400 - 2600 by the year 2009
its only logical it will be there, cause inflation is not good for anything.
as long the CPO is 2100, investors get a return of 12%. the return of the land is another return u havent add up.

overall u can expect around 13% on the 4th year.
around 15% on the 8th year
and 17% on the 10th year above cause the trees are mature.
after tat its all the way to 23rd year...

tats wat the lawyer says when we had a meeting with him many months back. im not tellin u somethin without consulting with the lawyers. cuz he is the one who wrote these clauses.

if you would want to get in great detail, i can help to arrange a appointment with the lawyer. cuz we done it many times 

or you can all come to the investment seminar at palace of the golden horses, every weekend 3pm.
its a short presentation and get a better understanding of the whole scheme.

juz contact or sms me, and i'll try to arrange a seat for u. nothing to be shy, no obligations to invest if you dun feel comfortable.

016-3170935
Andrew

(update)
pls check this clause
6.4 page 8
The management company shall not be obliged or required under any circumstances whatsoever to repurchase any Grower's Plot from any Grower during the Term of the Scheme.

what i understand from the lawyer, after he explained to us.
No guarentee buyback, grower able to write in to request company buyback.

point taken...
i know agreement means everything strongly agree  . but im sharing wat i know bout it with you guys wat i hav learned when im with this investment product, and bcuz im being updated every single day. im from marketing side, so there are options which is being approved by management company which i mention to you.
i think to help further strengthen this, if u need written black and white state u can sell on our web, in the form of a official letter signed by our GM and me as the witness, i would be more than happy to do it for u.

mmmm bout the return part, u get ur return based on CPO regardless of the land condition. the management company hav to cough out the dividen back to investors. if management failed to deliver promise, trustee steps in, appoint new management company.

the trustee is holding the master land title of the land, and all invested money goes to the trust account. Trustee is BHLB.

company stake is 50% of the 10,000 acre land.
company don't produce, they rugi 50% which they wont want and dirty their name.
program is approved by SSM (suruhanjaya syarikat malaysia)

updates on the gala dinner night at palace of the golden horses.
all investors who invested can participate in the event, RM100 per seat. Limited seats to cater for  around 800 investors. can pm me if any investors wants to attend.

if the cpo reaches 6000, the rest of the profits goes to the management company.
the bonus that investors get are from the yield of the land from 1-5 %

---

Added on January 8, 2008, 6:40 pm
CHGS doesn't guarentee a buy back, true. But u are able to sell it on the open market at appreciated price. Like properties the investment will hav its value overtime. There is no guarentee buy back for properties too if im not mistaken. Treat it like a land investment and it will all make sense. Basically you are investing at a plot of real land located at Gua Musang Kelantan.

About the agreement part, i really cant do much which i cant juz change anything but to help u a better understand about CHGS.
First option to buy back b4 maturity date. During maturity date, an independent valuator will be elected by the trustee, and put later put the land for sale. After its sold, the money will be equally divided back to the investors.
Pls check the agreement its on page 12 clause 11.
So far what i hav told my customers are, if they really in need to sell their plots, i will volunteer to help them sell their plot of land at the value they want. Country Heights has a huge base of customer, so its not impossible to sell a few plots of land.

if you can keep for 23 yrs, its the best deal in town available. Management hav to sell the land in order to honour the agreement. They evaluate the land b4 6mths of the maturity date. Trustee will make sure everything is taking place here. Such example are trustee will actually held a small seminar inviting investors to attend and discuss the matter at hand.
The land value may be lower than purchased price, its possible. But when u think about a land that's generating income for the past 23 yrs, its very unlikely to happen.

After sold the money will be evenly distributed back to investor.
That's where u get back your capital + capital appreciation.
It makes sense, u invest on a piece of land, being managed by company, and enjoy the yield of the land.
Seriously in case of emergency, u need money and need to sell off some plots, dun hesitate to contact the company, or me, we will help to assists u in any manner possible.

not here to touch and go leh, i dun wan to spoil my reputation, nor the company is ready to damage its name.

im not sure of the exact amount here.
but its definitely lower than market price outside there.
to compare, an acre land would cost around RM28,000 in area like johor. Some may reach RM32,000 but the location in other states of malaysia which im not sure.
CHGS, is by far the cheapest or comparable price on sale in the market price, RM22,000 an acre.and being managed for you.

im comparing a fully cultivated and planted with trees land for sale. not some empty reserved jungle land.
u can get raw land at very cheap price around RM7000 an acre, some even lower, but not cultivated / planted.

but pls correct me if im wrong, i dun wan giv wrong info here. thx thx

However, if we can sell the land >1k, then it is worth it ? 23 yrs locked in with minimal liquidity compared to FD ? Land appreciation/depreciation ?