Fortuna estate- urgent

This is a very important message to interested and capable buyers of big Palm Oil land in Sabah.

I have a few such big lands but we deal with this privately owned estate.

Fortuna Estate -Sugut land 17,480 Ac [ 17,120 ac fully planted and yielding] with oil mill, fertilizer mill and very infrastructure  The estate is located in Beluran, Sandakan about 120km from Sandakan Airport with direct flights to KL.

Summarised ages of the plants as follows:-

4-6 years   = 1,904 ha (29%);  7-15 years = 2,390 ha (34%); 15 and above = 2,503 ha (27%).

Gross revenue as audited for 2012 is about RM300m.

The Sale proposal:-

The sale is confirmed at RM43,000 per ac and not subject to any jack up in sale price.

The normal commission of 2% for the seller’s broker by the seller/owner.  3% to the brokers/agents of the buyer.  My group is 50:50 with the buyer’s broker/agent.  This will be handled by lawyers.

The seller / owner does not issue any letter but prefer face to face deal with the buyer [a must] and possible with presence of the broker/agents.  Brokers/agents including my group would sign a MOA with the direct broker/agent of the buyer of the deal.   If that is the case, my group in KK would represent all the broker/agent of the buyer. 

Terms by seller/owner:

1. First come first serve with the presence of buyer in person.
2. Earnest money of RM736,160,000 @2% RM14,723,200 or RM15m (nearest).
3. Proof of fund by any established bank etc.
4. Letter of Intent.

NB:  2,3,4 can be sent to me by email prior to the meeting – all keep confidential.

With the terms in 1,2,3,4 the meeting with the owner/seller can be arranged within one week in Kota Kinabalu even at night,

Term of commission:-

5. The seller/owner and the buyer must also agree to the said commission with an MOA.  My group is more concerned with the commission from the buyer.

Terms of dealing:-

Once items 1,2,3,4,5 are fulfilled, and at the meeting immediately an MOA would be signed by the seller/owner with the buyer and even on the spot to proceed to the next stage – the due diligence- which may take one week or more. I as the Chartered accountant can assist in the Due diligence exercise with an agreed fee  At the same face-to-face meeting, the terms forward like time schedule of  the Sale and Purchase Agreement and possibly the site visit to be arranged would be laid out in the MOA.  Suitable lawyers on both sides would handle the legal aspects.  Hopefully the S&P can be done within 3 months.

The transfer of shares of the companies owning the estates would be easy/time saving and cheaper than transfer of the land titles which can be laborious and very costly in terms of stamp duties.

Joshua Kong Yun Chee 6013-8394513; 6012-8380897, jknow823@gmail.com [ email/sms preferred]