|Current Status||Concept / Business Plan|
|Funding Required||RM5,000,000 or more|
• This is a cooperation for sandstone mining and low cost house development.
• 1st phase will be mining sandstones from the site and 2nd phase will be having the land for low cost housing.
• Our aim is to provide affordable houses within the vicinity of Kota Kinabalu city centre in line with the government policy in providing first home for lower income group.
• With government support, potential first time home owners will be able to afford houses starting as low as RM230,000 (~56,000 usd).
|Business Opportunity||The Market
• Sandstone mined can be supplied to the state government for the on-going PAN-BORNEO highway construction.
• Housing development will be the following phase.
• PR1MA (1Malaysia People’s Housing Programme) is a housing development programme under the Malaysian Ministry of Housing and Local Government.
• PR1MA subsidises developers to develop affordable housing for Malaysians household income of between RM2,500 – RM15,000 (~3669usd).
• Currently the nearest PR1MA projects within Kota Kinabalu are sold out at RM243,600 (~59584usd) in a months time.
|Revenue / Business Model||Business revenue
1 Mining phase,
Market price for sandstone is around 15-30 ringgit per ton.
20,427,311 multiply by RM 22.5 = RM 459,614,497.5
That is if the project wants to sell all the material first.
2 housing development
This phase is still estimated as the market price by that time will surely increase.
At this stage we will use the middle of price for all 8 PR1MA current project. The mid price of all the prima low cost housing will be around 224,625.
224,625 multiply by 8,000 units = RM 1,797,000,000 (One billion seven hundred ninety-seven million Ringgit)
• Overrall profit
To maximize the profit for the whole project, will take about 10 to 12 years to complete.
Estimate total profit for this project will be:
RM 1,797,000,000 + RM 459,614,497.5= RM 2,256,614,497.5
= 2,256,614,497.5 – 933,255,000 = RM 1,323,359,497.5
|Management Team||The Team
“All our team members possess experience in various aspects which are relavant and beneficial to the setting up and operation of the business.”
Ooi Chin U
A little inside about me.
|Company Background||This is a new company so we have nothing to go though here. but all of 3 of us have the experiences to deal with land matter or property in Malaysia, Specially Sabah.|
|Funding Milestone||Business starting cost.
Looking for 700,000US$ – Min per Investor 100,000US$
Seeking for a total of RM 3,000,000 (~731,175 USD), to complete the full geotechnical report.
after the geotechnical report, then only can start first phase of the whole project. first phase will be 85 million and the second phase need to do more calculation as that won’t be the first prirority
• Quarry operation cost
To get to the point of getting ready to start mining will require at least 1 or 2 year in preparation for all the machine and lincese.
As mentioned, 85million is the estimated price to get 1.1 running
65 million for the property ownership, 122.35 acres.
The other 20 million is cost for setting up the company, acquirement of the mining licenses, equipment and machine to operate.
Note: operation cost is not included at this stage.
• New Township.
This part will slightly cost more than 800 million to 1 billion ringgit Malaysia to complete, however this is just a rough estimation, the real figure should be calculated by a Quantity surveyor and a project estimator.
|% Equity Allocation||depend on how much the investor willing to put in, but minimum funding amount will be at 3 million. which we will provide 5-7% equity of the company that holds the land.|
|Expected ROI||if investing 3 million ringgit first year. expected to return at least 6-9 millions ringgit in 3-4 years time.|
|Risks and Mitigation||there are no risk that involved if investor just looking for investing the 3 million for the report. we will allocate at least 5% of the company as security.
when we sell the land we will give back the investor 3 million plus 5% of the sale of the land to the investor.
|Exit Strategies||after the geotechicnal report is done, we will start planing our strategy as which is the best way to go.
Either we can sell the land , which we can pay investor and the interest straight away or we can continue work together with the investor to proceed with the first phase of the project.
if we decide to sell the land with the geotechnical report. we expected to sell the land within a year time.
|Company Name||ooi & cha property consultant SB|
|Business Address||487 Jalan sangkancil kota kinabalu|
|Contact Person||lewis ooi|