13/03/2012 (The Star) - Golden Palm Growers Bhd expects to match its 8% payment return paid in 2011 for its Golden Palm Growers Scheme this year after receiving overwhelming response from investors for that scheme.

Executive chairman Andrew Phang said the group paid a 6% dividend plus a bonus of 2% last year and 2012 would see a repeat of the rate of payment as the scheme had exceeded expectations since its launch in August 2010.

“The main factor that has attracted the overwhelming response from investors is the unique nature of the scheme as it is the only scheme that distributes 100% of audited net profit to investors.

“This gives investors unlimited upside potential as well as preserves the integrity of the scheme for investors,” he said yesterday during a media luncheon.

Phang says the scheme has attracted
overwhelming response as it distributes
100% of audited net profit to investors

The group is involved in the oil palm plantation business, in particular the development and subsequent management of oil palm plantations.

It operates an oil palm plantation of approximately 11,280 acres in Gua Musang, Kelantan with 11,000 acres of this land designated for the scheme.

A total of 44,000 growers' plots had been created in the plantation where each plot is about a quarter acre and costs RM8,800 per plot.

“More than 3,000 growers have already invested in the scheme and over 1,250 ha have been planted,” he said, adding that the group would retain 30% of the 44,000 plots.

Phang said at as Feb 8, a total 14,601 plots had been sold to the public from a total 30,800 acres available for sale, with another 2,000 to 3,000 acres to be be taken up in another three of four months.

Under the scheme, investors could purchase plots from as low as RM8,800 per quarter-acre plot with a guaranteed return of 6% per annum plus a discretionary bonus for up to 2016.

Once the plantation is mature (2016 onwards), investors would enjoy a share of the plantation's profit or a minimum dividend of 9% if the average annual crude palm oil price exceeds RM1,500 per tonne up to 2033.

The scheme may continue beyond the maturity date (2033) if a proposal for replanting in the plantation is approved by growers.