We are real estate developer. Thats our day job. We have developed residential subdivisions and memorial parks.
Last month, parcels of land were presented to us and we visited the sites: a 7 hectare forested parcel of land in neigboring province, and another 33 hectares also in the same province.
The following were the initial findings:
1. 7 hectare. Its overlooking the lake with hudnreds of fruit bearing trees, about 5 kms from a famous church, and from the falls rapids. Its in the middle of nowhere. Possibilities: hospitality business, farm lots
2. 33 hectares about 5 km from a famous church, near the lake, near a recently constructed filtration plant of water company, Also in the middle of nowhtere: far from the market. The owners are dead and subject to EJ. The other developers who were ahead all ready made option moneywhich they forfeeited (having failed in whatever they wanted to do). There is a sort of initial resort development in the area. Possibilities: quarrying or socialized housing. However these are long shots because there is no infra project that is happening near the site so there will be quarrying operator takers and for socialized housing, we stil have to look around.
Another possibility: farm lots (and there are plenty) priced at P2k to P3K. But there are plenty and many have been burned by the sirens songs of being a farmer in remote mountains or dale. What can be unique, main value proposition.?
Environmental/opportunity scanning. As fate would have it this post saw vids on preceious woold businesses: unqiue flowers, tree farming and a fragrance source tree farming. A video said that a tree could yield 1 kg (3 to 5 max) that can sell for P50,000 kg per kg. And at 4m x 4 meters distancing, we could plant 800 such trees and that means a hectare can gross P40,000,000 in five years when we are ready yielding resins for the tree.
Then there is this company led by a former doctor, a surgeon, who will looking for plantation partners and they will take charge of the value chain: seedlings, farm technology, inoculation and marketing for a 40% share of the revenues Not bad Thats still a 24M in five years. And for a hectare and you sell 1,000 sm each, thats still P2.4 million ROI per 1,000 sm. Now if we sell 1,000 sm for say P2,500/sm, the buyer earns about 95% roi, quite a main value proposition. Thats a lot of ROI considering that he may buy on installment
New business concept: farm lots cum attraction cum business
Target market: investors, tourists, real estate buyers
Product concept: Farm lots (like Farm plate in Daraga.
Features:
1. Commercial: food, coffee shops, pasalubong, even beer house
2. Key tenants: a farm resort with spa, swimming pool, staycation hotel and resto
3. Attraction: colorful trees and flower farm, with fees for say _______P50.00 per person
4. Main businesses: tree farms: timber and fragrance trees
with tie up with the good dr.
Distribution, land use:
Roads: 20%
OS attraction: 10% (flower farm, like cherry blossom, madre de cacao) or even a mini zoo
Commercial : 5%
65% x 33 ha = 21.45 hectares. x 3 k = 643 x 40% to landowners = 257,00,000 = 778/sm return
This can be applicable to: the 7 hectare in same province, a 3 hectare in this province that is overlooking.
For my uncle who has hundreds of hectares in a Region 3 province overtaken by illegal settlers (which they can not touch such business concept can be applied). Enter into a contract growing with farmers who will say be paid 60-40% on straight gp sharing for free farming, or 70-30% if paid on salaries. At the same time this is going to be good politically to their in law who is a board member
