Listing ID: 12807 Last Refreshed: 05/06/2020 Total Views: 35253
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 another 106 durian trees (96 Black Thorn) adding into production in year 2022, you are expected to recoup your buying price in a much shorter time frame.
Profit and Loss Statement Assumptions:
Owner farms and sells the Musang King durians for exports to China; Non-musang kings export to Singapore
209 mature trees (80 trees are Musang King) bearing 50 fruits each harvest, with 2 harvests a year (around Jun and Dec)
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
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:
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.
Increased Production 3 Years Later in Year 2022:
Another 10 younger durian trees currently planted are also expected to bear fruits in 2 - 3 years by 2021
96 more Black Thorn durians were planted in Dec2019, expected to bear fruits in 3 years' time.
In short, 106 more trees will add into durian production in 3 years' time by year 2022, making total producing durian trees to be 315
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. 315 durian bearing trees by year 2022. (now its 209)
2. Location around the farm is also developing, giving higher value appreciation to the land itself.
3. China's market is too huge to miss, especially when price of durian there can easily triple the SG prices
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).
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 Sep2020, 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.
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
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