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Listing ID: 12807 Last Refreshed: 30/07/2019 Total Views: 28642

马来西亚 猫山王榴梿园 出售 Mature Durian Plantation in Machap (Johor, West Malaysia) for Sale

Bukit Panjang

Asking Price: S$2,900,000
  • Premise Type N/A Premise Size 539708sqft
  • Monthly Rental N/A Rental Desposit N/A
  • Revenue N/A Cash Flow N/A
  • Gross Profit N/A Net Profit N/A
  • Stock N/A Liability S$0
  • Payable S$0 Receivable N/A
  • FFE N/A Established 1990
  • Owner Role Full Time Staff 0
  • * Revenue, Gross Profit, Net Profit, Cash Flow are based on Annual average
Sean Ong
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Reason For Sale

Owner is old, children not taking over

Description

I have a mature durian farm in Johor for sale. I am a Singaporean, selling as the owner of the farm (not agents), having owned the farm for more than 20 years. Pictures attached are actual farm pictures taken in Jan 2018.

I am selling at a SGD 2.9M ie Price Earnings ratio of 10 

With a projected annual gross revenue of SGD 289,000, it will take about 10 years to recoup $2.9M assuming you are selling to China and Singapore.  Now that China has opened up for whole-husk durian imports, plus the potential to add another 80 Musang King or Black Thorn durian trees to the farm, you are expected to recoup your buying price in a much shorter time frame.


Profit and Loss Statement Assumptions:

  1. Owner farms and sells the Musang King durians for exports to China; Non-musang kings export to Singapore

  2. 209 mature trees (80 trees are Musang King) bearing 50 fruits each harvest, with 2 harvests a year (around Jun and Dec)

  3. Musang King sells at S$20 per kg, the rest of the durian types at S$10 per kg; assumes average weight of 1kg per durian

  4. Gross revenue of SGD 289,000 per year (as derived from point 2 and 3)

There are no audited financial statements as the farm has been operated as a one-man show in the past and currently being leased out.


Types of Durians Planted:

Current:

40% Musang King (猫山王) planted and the rest are all branded durians like D24, 101, XO. 

209 trees are mature trees bearing fruits already. These durian trees are more than 10 years old ie stage of producing very good fruits. Another 10 younger durian trees currently planted are also expected to bear fruits in 2 - 3 years. 

Increased Production 3 Years Later:

80 more Black Thorn durians are going to be planted in Sep2019, expected to bear fruits in 3years time.

In short, 90 more trees will be add into durian production in 3 years time.


Land Size & Condition:

5.01 hectares (12.39 acres). Freehold. Title deed will be shown upon meet-up

Gentle sloping land (good for durians so that there is no excessive water retention in soil)

Land valuation (in Jan 2019) without durians is SGD 560,000 


Potential for Growth:

1. About 10 new durian trees (bringing current total trees to be 219) are expected to bear fruits in next 2 - 3years. 

2. There are enough farm space to grow another 80+ new Musang King trees, bringing total number of durians trees to 300 potentially

3. Location around the farm is also developing, giving higher value appreciation to the land itself.

4. China's market is too huge to miss, especially when price of durian there can easily triple the SG prices


Location:

The farm is located in the vicinity of Kampung Machap, 86200 Simpang Renggam, Johor, Malaysia, about 1hr drive after Woodlands checkpoint. The farm is just beside the North-South Highway Machap exit (see map in picture uploaded).


Current Condition:

The owner is not farming and selling the durians himself currently. 

The farm is now leased out to an experienced Malaysian durian farmer for past few years, thus explaining why the farm is so tidy and well arranged with nets etc as seen from the pictures uploaded. Though the lease ends Sep2019, under our lease agreement, the lessee can be asked to vacate the land immediately once new owner takes over or the new owner can renegotiate a new lease price and agreement upon take-over.


Asking Price:

We are looking at a price of around SGD 2.9Million ie S$5.37 psf

Land value itself (without durians) is already valued at SGD560,000 in early 2019. Report can be shown on request.

Singapore, Iskandar zone and Senai Airport are all less than one hour's drive away from our farm.

An uncultivated piece of land, about 5acres, 2km away from us, has been sold for S$3psf in 2018.


Breaking News 1Jun2019: China has opened up for whole husk durian imports from Malaysia

https://www.channelnewsasia.com/news/asia/malaysia-durian-export-china-whole-fruit-prices-stable-11584534

http://www.channelnewsasia.com/news/asia/malaysia-s-booming-durian-industry-sees-new-investors-management-11568322

According to the articles, China imports about 300,000 tonnes of durians every year and only 1% of the 1.4Billion China population has tasted durian so far!

Less than 10,000 tonnes of durian in China comes from Malaysia. Imagine the growth potential of durian exports to China from Malaysia!

No wonder even the Indonesian President has told his people to start growing durians: https://www.asiaone.com/asia/jokowi-tells-oil-palm-tree-growers-turn-durian



Business Operation

A 2-storey wooden working shed is built in with cooking, storing and stay-in facilities (see picture uploaded). Multiple ponds are also available in the plantation from a previous ornamental fish business. Selling price includes all assets on the land.
Facilities
Durians are now very hot in many countries, especially China, which is a super huge market. Revenue will be much higher if the durians are sold in China.
Expansion Potential
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