THE INVESTMENT APPROACH OF CALVIN TAN

NUSANTARA (NEW CAPITAL OF INDONESIA) UNDERSTANDING ITS LAND STATUS & VALUE, By Calvin Tan

calvintaneng
Publish date: Tue, 28 Nov 2023, 01:00 AM
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Hi Guys,

I have An Investment Approach I which I would like to all.

Dear friends of i3 Forum,

After posting about Putrajaya Versus Nusantara (Indonesia) questions arose about the nature of lands in Indonesia

We shall be happy to provide you all the relevant info


Here you go


 ALL LANDS PERTAINING TO PALM OIL IN KALIMANTAN ARE USUALLY LEASEHOLD with 25 to 35 Years' Lease & Renewable

So far we see all these lands purchased by Wilmar, KLK, Tsh Resources, MKH, IjmPlant were all Leasehold with Hak Milik Guna as title deeds


1. Example of KLK purchasing Tsh Resources Land but aborted


KLK-TSH Indonesia deal positive for both sides

KUCHING: The team at Kenanga Investment Bank Bhd (Kenanga Research) says the deal between Kuala Lumpur Kepong Bhd (KLK) and TSH Resources Bhd (TSH) bodes well for both parties.

To note, KLK entered into a conditional share sale and purchase agreement with wholly-owned subsidiaries of TSH to acquire 90 per cent stake each in PT Farinda Bersaudara (FB) and PT Teguh Swakarsa Sejahtera (TSS) for a total purchase consideration of US$110.1 million or about RM459.17 million.

FB and TSS collectively holds six rights to cultivate f or a total area of 22,375 hectares (ha) in East Kalimantan, of which 10,816ha is planted. The rights

 land also includes a 60 metric tonne (MT) palm oil mill which supports FB’s operations.

 

The transaction is expected to be completed by the first quarter of 2021 and will be funded by existing cash reserves and bank borrowings.

“We understand that the group (KLK) has been on the lookout for brownfield upstream assets, but were surprised by the timing of the acquisition given KLK’s proposed 60% acquisition in PT Pinang Witmas Sejati, South Sumatera in April,” Kenanga Research said on the deal.

“The proposed 90 per cent i

nterest each in FB and TSS would effectively increase KLK’s planted area by circa five per cent to 192,900ha, which we believe is an effective utilisation of its large war chest of about RM3.9 billion.”

KLK set to take over IJM Plantations for RM1.5bil

KLK has proposed to acquire the 56.2% stake from IJM Corp at RM3.10 per share, a 26% premium.

Reuters - 09 Jun 2021, 8:28pm

KUALA LUMPUR: Malaysian palm oil giant Kuala Lumpur Kepong (KLK) Bhd has proposed to acquire IJM Corporation Bhd’s entire stake in IJM Plantations Bhd for RM1.53 billion (US$371.72 million), IJM Corp said today.

In a Bursa filing, IJM Corp said it has received a letter from KLK, one of the largest palm oil planters in the country, offering to acquire its 56.2% equity holding at RM3.10 per share.


NOW TAKE NOTE

LIKE IJM PLANT 
Both TSH RESOURCES & IJM PLANT OWN PALM OIL ESTATES IN SABAH, EAST KALIMANTAN & SUMATRA (THEIR ASSETS ARE IDENTICAL AND LOCATED NEAR EACH OTHER)

IN INDONESIA ALL THEIR LANDS ARE LEASEHOLD WITH UP TO 35 YEARS LEASE & RENEWABLE NEAR EXPIRY

Announcement detail

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : RELATED PARTY TRANSACTIONS TSH RESOURCES BERHAD ("TSH" OR THE "COMPANY") PROPOSED DISPOSAL BY PT BULUNGAN CITRA AGRO PERSADA ("BCAP"), A 90%-OWNED SUBSIDIARY OF TSH, OF BCAPS OIL PALM PLANTATION, TOGETHER WITH THE UNCERTIFIED LAND ADJOINING THE PLANTATION, ALL SITUATED AT NORTH KALIMANTAN, INDONESIA ("SALE LAND") FOR A TOTAL DISPOSAL CONSIDERATION OF RP2,428.86 BILLION (EQUIVALENT TO APPROXIMATELY RM731.09 MILLION) TO BE SATISFIED ENTIRELY BY CASH ("PROPOSED DISPOSAL")

TSH RESOURCES BERHAD


Desa Tanah, Kuning & Desa Mangkupadi

Kecamatan

Tanjung Palas Timur Kabupaten

Bulungan Provinsi

Kalimantan Timur


Plantation land


12,731 hectares


Oil Palm Plantation


35 years lease

expiring on 03.10.2046


Cost Rm204,557,123

Date of purchase:  16.08.2011

From above 

WE NOW SEE TSH BOUGHT THESE 35 YEAR LEASEHOLD LANDS IN YEAR 2011 FOR RM204.557 MILLIONS


HOW MANY ACRES/


to convert hectare to acre

multiply 12,731 hectare by 2.471

= 31,458 acres 

Sale price is Rm731.09 Millions

Divide it by total land sold 31,458 acres

= Rm23,240 per acre


Alright: Now we see cost Rm204.557 Millions

Sale Rm731.09 Millions

Profit is a whopping Rm526.533 Millions

A Mind Blowing almost Half Bilions Ringgit Profit! just for 31,458 acres leasehold land sold in Bulugan seaside up north of Nusantara


4) NUSANTARA : PROPOSAL TO CHANGE LAND USE BY UP TO 100 YEARS

President Jokowi in his utter zeal to see success of IKN NUSANTARA is willing to change land rules


See

Indonesia to extend land permits up to '100 years' in Nusantara

Investment minister '100% certain' of finding investor funding for new capital

Indonesian Investment Minister Bahlil Lahadalia says his country can offer value-added tax exemptions and swifter licensing for investors in the proposed new capital on the island of Borneo. (Photo by Rhyannon Bartlett-Imadegawa)



LONDON -- Indonesia could offer value-added tax exemptions, longer land permits and swifter licensing for those who invest in the new capital project, Bahlil Lahadalia, the country's minister for investment, told Nikkei Asia. He added that he is confident about bringing in outside investment and hinted at agreements with European investors "towards the end of the year."

In an exclusive interview, Lahadalia stressed the land permits in Nusantara, the name of the proposed new capital, would be for "a longer period compared to the other zones in Indonesia. The extended land permits can [reach] until 100 years for the new capital city.

"There will also be swifter licensing periods for investors coming to the new capital as well as competitive land prices."

Lahadalia was speaking Thursday on the sidelines of the Indonesia Investment Forum in London. The event was organized by the Indonesian embassy, the Indonesia Investment Promotion Centre, and Bank Indonesia's office in London, supported by Asia House, to promote the country as an investment destination to over 100 potential investors.

A key project among the investment opportunities is President Joko "Jokowi" Widodo's ambitious 466 trillion rupiah ($31 billion) plan to relocate the capital of Indonesia from the sinking and overstretched Jakarta in Java to the island of Borneo.

Widodo's plan is to have 80% of the construction costs come from private investors and foreign governments, but the grand project so far has failed to attract such backers.

Japan's SoftBank Group pulled out of the project in March, and few deals with foreign companies have been announced since then. Only basic construction work has begun at the intended site, even though plans are for the Presidential Palace to be moved to Borneo by early 2024. This has left critics and potential investors skeptical.

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Lahadalia, however, speaks in confident tones. "I'm 100% certain that we can fulfill the 80% target," he told Nikkei.

He said "many discussions with potential European investors" have taken place and these are "currently being finalized."

"Probably toward the end of the year, maybe December, we [will] have more announcements," he said, mentioning support from former British Prime Minister Tony Blair.

Investment agreements are progressing in the electric vehicle and battery manufacturing sector, a key focus of the government.

In September, Taiwanese tech group Hon Hai Precision Industry, better known as Foxconn, announced the establishment of a joint venture with Indonesian coal miner Indika Energy to manufacture batteries and electric vehicles in Indonesia.

"They are currently finalizing the plan to purchase land for their manufacturing facilities in Indonesia," Lahadalia said.

Aside from the new capital, the government is also planning what it bills as the world's largest green industrial park, one spanning 30,000 hectares in North Kalimantan that will be powered by renewable energy.

"We have now had many discussions with investors from the petrochemical, EV and aluminum smelting industries," he said.

There is also a planned strategic green industrial zone in Batang in Central Java.

"We are very much open to all investors," Lahadalia said, "including potential investors from the United Kingdom or from Europe. The ball is pretty much in their court."

Lahadalia added he would "love to roll out the red carpet" to facilitate these investments.

Looking to the COP27 United Nations Climate Conference, which is fast approaching in November, he questioned the current state of fairness. Indonesia is a key player in climate matters as the custodian of vast rainforests, while also being reliant on coal and a major coal exporter.

While Indonesia "fully endorses" the global agreement to reduce carbon emissions, he said, "fairness and justice is a very critical component if you want to witness a true and effective transition globally."

One problem from Indonesia's perspective, he said, is "the vast disparity" in the price of carbon between developed and developing countries.

Additional reporting by Erwida Maulia in Jakarta


5. MKH SPIN OFF NEW PALM OIL LISTING:

THEIR PALM OIL LANDS ALSO GOT ONLY 35 YEARS LEASE UNDER HAK MILIK GUNA

AND IPO IS PRICED AT 60 SEN PER SHARE

THE LANDS QUITE SMALL


MKH PROPOSED LISTING OF MKH OIL PALM IPO IN KALIMANTAN

“Indicative IPO Price” : The indicative price of RM0.60 per IPO Share under the Proposed IPO

“IPO Share(s)” : Issue Share(s) and Offer Share(s), collectively

“ISPO” : Indonesian Sustainable Palm Oil

“Issue Share(s)” : 220,000,000 new MKHOP Share(s) to be issued under the Proposed Public

Issue

“Ivakijaya” : Ivakijaya Sdn Bhd (200501015554 (692601-P))

“Listing

Requirements”

: Main Market Listing Requirements of Bursa Securities

“Lotus Way” : Lotus Way Sdn Bhd (199601013973 (386323-M))

“LPD” : 11 October 2023, being the latest practicable date prior to the printing of

this Circular

“M&A Securities” or

“Principal Adviser”

: M & A Securities Sdn Bhd (197301001503 (15017-H))


Take a look at MKH Lands (Refer Bursa Annual Report of MKH)


List of Properties by MKH

As at 30 September 2022

1)East Kalimantan, Indonesia

Oil palm plantation,

39,395 acres


Leasehold of

35 years

expiring in

year 2042

with an

option to

renew for

a further

period of

25 years

and ^

office building, CPO mill and

estate quarter

4,084,610 sq. ft.)


2)  East Kalimantan, Indonesia

^ generally can be further renewed for another period of 35 years upon fulfilment of conditions

Oil palm plantation and

estate quarter

(built-up area of approximately

6,043 acres  Leasehold of

35 years

expiring in

year 2045

with an

option to

renew for

a further

period of

25 years

and ^


TOTAL LANDS (LEASEHOLD) OWNED BY MKH IN EAST KALIMANTAN


39,395 &  6,043

= 45,438 Acres


Note: TSH got much much more lands in Sabah, Central Kalimantan, Sumatra & Nusantara (east Kalimanta: 94,700 acres)


Thplant 240,000 acres

Bplant 220,000 acres

Jtiasa 206,000 acres


In months ahead we will know how IB Bankers promote MKH Palm Oil as Well as KULIM IPO


And how will Market react

It will be interesting to see


Meanwhile please do your own due diligent study And Investigation


With Kind Regards


Calvin Tan


EXTRA:


In Eagle Vision First Mover on Palm Oil

 About 333 members. We have Mr Jervis Tan (Wizman)

He is a Property Real Estate Professional

He called up NUSANTASA Real Estate Agents and got these Info


Posted by Wizman > 2022-06-09 16:18 | Report Abuse

I ask Indonesia's based real estate company to check TSH one of the palm oil estate in

Desa Rantau Makmur, Tanjung Labu, Kecamatan Rantau Pulung, Kabupaten Kutai Timur,

Kalimantan Timur. Total land area = 18,372 acre/7,435 hectare.

According to them, the surrounding market value as below:-

2nd road/2nd tier = RM7.00psf - RM14.00psf

main road/1st tier = RM27.80psf - RM41.80psf

Market Value / Total Land MV / TSH Share Price

RM7.00psf - $5,601,990,240/ $4 per share

RM14.00psf - $11,203,980,480/ $8 per share

RM27.80psf - $22,247,904,096 / $16 per share

RM41.80psf - $33,451,884,576 / $24 per share

[TSH total shares = 1,380,173,509]

Let's see average market value ($4+$8+$16+$24÷4)

= RM13 per share

[only one palm oil estate taken for calculation]

TSH indeed severely undervalued?


Calvin comments:


According to Info collected Kutai East Land cheapest per sq ft is Rm7 per sq ft

One acre Multiply Rm7 by 43,560 = Rm304,920 per acre


Now let's go see TSH lands in Kutai East (Nusantara)

Refer Bursa webpage (See Properties owned by TSH)


Desa Rantau Makmur, Tanjung Labu

Kecamatan Rantau Pulung

Kabupaten Kutai Timur

Kalimantan Timur

Plantation land 5,750 ha (hectare)

Oil Palm Plantation

Rm98,757,661

Date of Purchase/last valuation :  22.02.2013


ok let's do  breakdown


convert 5,750 hectare to acre by x 2.471

= 14,208 acres


To get cost per acre divide 

Rm98,757,661 by 14,208

= Rm6,950 per acre


How much per sq feet

Divide by 43,560

= 15.9 sen per sq feet


According to Wizman's 1st hand info contact Kutai Timur (Kutai East) land now cheapest is Rm7.00 psf


See

 

Now TSH best kept secret got a total of  94,700 acres in Kutai West (3 plots) Kutai East (1 plot)


If we take just Kutai East 14,208 acres

at Rm7.00 psf is Rm340,920

and total value of these 14,208 acres

= Rm4,332,303,360


That is Rm4.33 Billions


how much per share of Tsh?


See the short cut formula to calculate


SUMMARY OF KEY FINANCIAL INFORMATION

30 Sep 2023

INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR

CORRESPONDING

QUARTER

CURRENT YEAR TO DATE
PRECEDING YEAR

CORRESPONDING

PERIOD

30 Sep 2023
30 Sep 2022
30 Sep 2023
30 Sep 2022
$$'000
$$'000
$$'000
$$'000
1
Revenue
298,720
262,652
805,588
1,024,414
2
Profit/(loss) before tax
57,506
294,439
139,234
490,755
3
Profit/(loss) for the period
39,244
296,443
93,758
474,308
4
Profit/(loss) attributable to ordinary equity holders of the parent
29,542
258,428
69,533
412,239
5
Basic earnings/(loss) per share (Subunit)
2.14
18.72
5.04
29.87
6
Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7

Net assets per share attributable to ordinary equity holders of the parent ($$)
1.4841
1.3772

 above we see Profit of Rm29.542 Million is 2.14


So Rm4,332,303,360 divides by Rm29.542

X 2.14

= Rm3.13 (Wowee!) Just this one small piece is worth Rm3.13 per share


Hmmm?


TSH RESOURCES DEEP VALUE ASSETS GOING TO OVERTAKE BPLANT


WHEN THE FINAL VALUE OF TSH'S HIDDEN TREASURE LANDS ARE FINALLY UNLOCKED IT WILL MAKE BPLANT'S ASSETS LOOK LIKE CHILD'S PLAY


So will Price of TSH shoot up?

No so fast

Why not?

Answer: 

In Malaysia IB Banks Issue Palm Oil Call warrants to bet AGAINST PALM OIL

As such they will Do Short Sell To SUPPRESS Palm Oil Mother shares to Kill Warrrant and cause warrant to expire out of money

So: Just buy more while cheap

One day they might stop issuing PALM OIL CALL WARRANT (SEE NO MORE FRESH CALL WARRANT ON IJM PLANT AND BPLANT)


Discussions
Be the first to like this. Showing 4 of 4 comments

calvintaneng

From all above examples we see Hak Milik Guna (35 year leasehold lands ) are valued highly in Kalimantan

1. Klk wanted to buy lands from Tsh but aborted

2. After Klk failed to secure lands from Tsh it panicked and paid a premium to take over Ijmplant at Rm3.10(from Rm1.86)

3. Greentech Park bought Tsh bulugan land for RM731.09 Millions (book value Rm204.557 mil)

4. Indonesia Govt willing to move goal post and change land use in Ikn Nusantara by increasing landlease to 100 years

5. Mkh Palm oil Ipo at 60 sen
When it has only a smallish 45,438 acres

M&A securities indeed very brave and bold to undertake this IPO

2023-11-28 01:12

calvintaneng

RISE OF A NEW ADMIN CAPITAL

https://www.youtube.com/watch?v=wEB0hgqcuMI

2023-11-28 02:34

calvintaneng

calvintaneng

How nice to know TSH RESOURCES got 94,700 Acres Lands in IKN NUSANTARA

Book Value about Rm5,000 per acre (Current market value as high as Rm1 Million per acre

See

https://www.youtube.com/watch?v=P27JpoUUUsw

Investing like this now we know why Warren Buffet said, "I know I will be rich"

2 weeks ago

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