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Durian Farming Resort Project

Durian Farming Resort Project

Durian Farming Resort Project
Current StatusGrowth
Amount InvestedRM200,000.00
Funding RequiredRM 8 million
DescriptionCurrently we have a piece of land measuring 6.36 acres located near Karak town, State of Pahang, Malaysia. The land has been planted with 200 durian trees whereby 170 trees are musang king species and 30 trees are black thorn species. The trees currently 2 1/2 years old and 10 to 12 feets tall. We plan to have a durian farming resort style on the land because of the strategic location. The land is just beside main road equipped with direct water and electricity.
Business OpportunityWe started with durian cultivation on the land. We have successfully planted 200 durian trees with the experience from our cultivation consultant. Currently the durian trees are at stage 2 after 2 1/2 years. The trees are all very healthy. The market for durian fruit especially musang king and black thorn is big for local and export market. China market is going to be huge . Singapore and Hong Kong market are stable. China already approved that Malaysia can export durian in whole fruit form. But there are still a lot of China tourist coming to Malaysia every durian season to taste the freshness. Locally, we can see increasing local tourist venturing into durian orchard to try the fresh from farm durians and experience farm living.
Revenue / Business ModelOur priority revenue will be from durian fruits which only have 2 seasons annually. Initially between 1st year to 3rd year period of trees producing, fruits are not many. Average about 50 to 70 fruits per tree. After the 4th year of producing, average will be 100 fruits per tree and keep on increasing. Maximum about 250 fruits per tree. The price of musang king durian in Malaysia average about RM40 per kg and each durian can weigh from 2 to 3 kg. In Singapore, at least SGD20 per kg and China is at least USD30 per kg. We can sell the durians to the exporters or local distributors in bulk. Second, we can get local tourist and also China tourist to visit and stay at our farm to try the fresh durians and experience farm living. For those months without durian season, tourist can come for homestay, fishing and try our local home cook cuisine. For info, durian tree life span at least 50 years. So the revenue from durian sales can go up to millions each year because price keep on increasing over the years. Experienced durian farmer or grower getting less and lesser.
Management TeamMy management team consist of 3 main person. The cultivation consultant in charge of durian trees. The manager in charge of the farm management and finance. The marketing person in charge of planning and sales. In future, we plan to get a cook in charge of Food and beverage.
Company BackgroundWe started this farming project since middle of 2016. With land clearing, cultivation and planting. We also did water piping to each durian tree. The water source from internal pond. Fencing the whole land. Invested in about RM 200k. Up to date, no sales and no profit yet. What we have achieved now is the trees are growing healthily and estimate another 2 years will start to produce fruits. We can see the trees successful rate now at 90%.
Funding MilestoneWe need funding of RM 8 mil. Firstly to purchase the land cost about RM 5 mil because the land is not belong to us. We have verbal agreement with the land owner on certain percentage of profit sharing from sales of durians. Another RM 3 mil is to built few storeys of hotel/home stay building for tourist accommodation. Furthermore, to build a rest area or eating place on top of a pond. And also for the farm maintenance cost for 2 years. All this will be completed when the durian trees start to produce fruits.
% Equity Allocation50%
Expected ROI50% of sales or revenue will be distributed to shareholders annually.
Risks and MitigationThe most risk is if the durian trees failed initially. But we have already passed the first stage. The successful rate now is very high.
Exit StrategiesIn future, the shareholders who want to exit can sell their shares back to the company based on the company current and future revenue estimation and also the land value. Or we can sell the whole company together with the orchard to potential investors. The most suitable time is after 10 years onwards.
Company NameAscension Roofscape
Business AddressKarak, Pahang, Malaysia
Contact PersonJacky Chan
Capital Team