Investment Details
| Investment Plan | Farm Ownership Option |
|---|---|
| Investment Duration | 5 – 15 years |
| Renewal Period | Every 5 years |
In this option, the client actually and actively owns a portion (1 plot) of the farm estate as a partner. Appropriate receipts and legal documentations will be provided. Client is at liberty to transfer ownership or convert farmland for other investment purpose such as residential etc. once or immediately corporate farming activities have ceased on the property.
| Item | Cost |
|---|---|
| Land ownership | 280 000 |
| Cost of land clearing | 5,000 |
| Cost of ridge making | 5,000 |
| Seedlings | 132,000 |
| Fertilizers | 75,000 |
| Maintenance cost to maturity | 90,000 |
| Insurance 5 % | 15,350 |
| Total investment cost | 602,350 |
Production Life Cycle & Returns Guaranteed
| Regular Harvest Cycle | 12 months |
|---|---|
| But 1st Harvest Cycle | 18 months |
| Guaranteed expected pineapple fruits | 3000 |
| Sales price per fruit | 150 |
Returns on Investment
| Description | Amount |
|---|---|
| Sales price × no. Of fruits | 450,000 |
| Less 12 month maintenance cost + fertilizer | 135,000 |
| Gross ROI | 315,000 |
| Less farm mgt. fee 20% | 63,000 |
| Net ROI | 252,000 |
| Amt. payable to investor | 252,000 |
PLEASE NOTE:
- Note documentation cost of N50,000 applies, however this cost could be paid much later within 2 years of this investment.
- Net ROI of N252,000 will be remitted to subscriber every 12 Months for 5 cycles except in the 1st cycle which is 18 months. This is because the 1st harvest cycle for pineapples is actually 18 months. This period is necessary for the pineapple crop to establish appropriately.
- 10% Maintenance/Administration fee will be charged at the end of the 5-year tenure.
Payout to investor will be as follows:
| 1st payment (After 18 months) | 252,000 |
| 2nd payment (Next 12 months) | 252,000 |
| 3rd payment (Next 12 months) | 252,000 |
| 4th payment (Next 12 months) | 252,000 |
| 5th payment (Next 12 months) | 252,000 |
| End 1st tenure. Client decides whether or not to renew investment (No deductions) | – |
| Total | 1,260,000 |
Advantages Over Option A & B
- Renewals will be automatic since the investor is a premium client and farm owner.
- Note Payout at end of 1st tenure will be N252,000 x 5 = N1,260,000 and there will be no deductions as in options A & B since no leasing cost will be incurred.
The client is guaranteed of further returns or recouping his investment in full if he decides to do either of the following:
- renew the contract
- request our disposal of the property on your behalf at a premium
- Request that we immediately repurchase the asset from you.
If client chooses option C then we will do as follows
Pay .i.e 1,260,000 + 572,232.00 (Invested amt. less 5% admin. Charges) = N1,832,232.00
- Average annual ROI = 1,832,232 ÷ 5
= 366,446.40
- Average %age Annual ROI = 366,446.40 ÷ 602,350 × 100 = 60.84%
Approx. = 61% per annum
- Investment growth = 1,802,115 ÷ 602,350 x100
= 304% growth
- Limited offer available