Jardin Smith International

There is a post here promoting Jardin Smith. I often  respond to these posts but amazingly my responses get held for review while the pro JSI posts get posted.
So from this point forward I will respond here and link to the original article of concern.

Points made in article:-

Check out UK-based raw land investment options by Jardin Smith International. Jardin Smith International is a land investment company that buys greenbelt land in the UK, cuts it up into small plots and sells it to investors.

So far so good. An actual  line of truth .

Now, here’s the catch – UK land that lies in greenbelt area cannot be used for residential purposes unless and until the government rezones it (marks it okay for residential purposes). In normal circumstances, this factor may put people off. However, Jardin Smith retains 25% of the land as its own investment so that people buying the land are reassured that it will perform some acts that will help get the land rezoned.

Note the linking between  a negative fact and an incorrect positive opinion. Standard Land Banking behaviour. . JSI may or may not hold 25% of the land. A fact is they make margins of up to 10,000% on the land they sell so they can throw the 25% away if they want and still make a huge profit. They have not got any land re-zoned to date and the one site they made a speculative attempt on was roundly and completely rejected

One thing that I like about the company is that they were candid enough to inform me that the rezoning permission would take 5 to 10 years. So, if you are looking to make a quick buck, this is not it. This is the kind of honest and blunt advice that is appreciated. Once the permission comes in, the land price spirals and can go up to 10 times the purchase price! 10 times appreciation in 10 years makes for a return of 100% per year!

Not true. Or to put it another way complete bullshit. Greenbelt land cannot be developed without a change in local policy. At least two of the local authority areas where JSI hold land have made public statements that they will not look at developing any greenbelt land for a minimum of 20 years. Others say they have no plans to change policy in the forseeable future. Fact:  If the land cannot be developed  and you decide to sell on the  open market you  will most likely lose 90%-100% of your investment.

The reps at Jardin Smith convinced me that with cities getting crowded and houses getting cramped in UK cities, people were looking to move to the outskirts. They showed me statistics related to affordable housing leaving me with no doubt that the government is not doing enough to create more affordable homes and that sooner or later, the government will start marking greenbelt land as fit for residential use. Jardin was of the opinion that the 2012 Olympics will give a boost to the UK real estate market.

  What does the 2012 olympics have to do with the UK real estate market ?  80% of the UK is undeveloped. To avoid urban sprawl there are greenbelt protection policies. This is what keeps house prices high in cities . If those policies were relaxed and people can build anywhere then house prices will collapse. If the land cant be developed you lose. If the government gets rid of greenbelt policy you lose because now the builders can build anywhere.

Their land price statistics also convinced me about the investment potential. They wanted a 10% upfront (credit card swipe would have worked) and I was happy to know that UOB cardholders could pay the balance in interest-free 12 month installments. Well, though I am convinced about the investment potential and the people, I am yet to decide. Can someone help? Thanks.

My opinion is you are working for JSI. My opinion this is a lousy investment. My opinion you will lose most or all of your money if you hold this investment. 

—————————-

My unapproved  response below

Some UK land can be developed. Just not the land being offered by companies like Profitable Plots and Jardin Smith in Singapore. This is protected or green belt land. Greenbelt land has a very low value in the UK. It can only be used for agriculture or recreation. If it could be developed local UK developers would snap it up and hold it. Local UK residents know this, or can check with the local authority very easily. So these companies buy this land cheaply and sell in places like Singapore at very high profit by suggesting that it may be suitable for development in the near future. If you are checking on investment sites or blogs  you are not doing your dutiful checking. Check with the UK FSA, UK Land Registry, UK Local Authority or the UK police and press. The UK has launched a prosecution this year against a large land banking company offering green belt land under misleading circumstances. Hopefully the same thing will happen in Singapore soon.

6 thoughts on “Jardin Smith International”

  1. Say No to Jardin Smith International Company

    It is said that Jardin Smith International is asking people to invest in their company; however they are telling them to wait for 5-8 years. Is it a joke to wait 5-8 years? Waiting is nothing but checking the level of blood pressure for every day. Don’t people get bored and unsatisfied checking Blood pressure for 8 years? It may look bewildered to some of the readers of the articles what does the point of blood pressure in the investing stuffs. So, the answer is simple, if the risk increases, tension increases and when the tension increases, blood pressure increases.

  2. You don’t have to wait 5-8 years. I can tell you now the most likely outcome for an investment in UK greenbelt land is zero return. Jardin Smiith does not operate in the UK and would not be allowed to operate there by the UK FSA. They have been asked to leave Brunei.

  3. I am a current investor in Jardin Smith International Pte Ltd (JSI) based in Singapore.

    Besides land banking, JSI also secures investors for agricultural products.

    I was one of the earliest investor in their teak products (sold by APC and now fronted by APS as the marketing agent in Singapore).

    Since May 2014, I have been following up with JSI wrt my teak investments.

    Unfortunately, there are a lot of unanswered questions to date and this eventually lead to APS offering a verbal package settlement when APS took over the case after the person in charge at JSI (Matthew) during the last quarter of 2014.

    More unfortunately, APS/JSI/APC are now refusing to fulfill some of the terms of the verbal settlement terms (yes, call me stupid or too trusting if you want for holding them to verbal agreements).

    I am currently exploring legal options at my end.

    For now, would like to share / encourage all teak investors to start asking questions including but not limited to the followings:-

    a) APC advise that APC has never sell Gliricida as an ongoing revenue as per the marketing materials presented to investors by JSI. APC only give returns on Gliricidia up to 5 – 6 years depending on the Teak growth rate.

    b) For investors with contract terms requiring APC to submit annual reports wrt to the growth status of your teak trees, please note that APC has not been submitting them for my case and it becomes a problem when I get a shock from the growth numbers specific to my trees.

    c) For investors who were given free 7 years old teaks (25 for every 250 teaks purchased), please check and ensure that the teak trees are growing normally (I was initially told my 25 11 year old free teak trees are worth only $1000 and later on quoted another number $11,000 when I challenged them). Anyway, the quotes are far from the the projected price and the measurement of the teak trees as at the 7th year onwards was not given for subsequent verification to establish the health of the trees at that point in time …. We were told they are healthy trees).

    d) For those who have received yearly reports from APC, you might want to verify the latest numbers for your teak trees as compared to the average numbers provided by the APC report. There is a huge gap for my case which cannot be reconciled.

    The above are the key issues I faced. Will leave it to you guys to find out more for yourself.

    Ps. These are the parties I deal with since May last year FYI … Matthew (ex JSI), Rai (JSI), Lynn (JSI), Ricco (ex JSI, currently APS), Richard (JSI, MY), Barry (APC).

  4. I already book and paid deposit for 3 plots of land. After reading all the comment i regreted and wish to withdraw. Can i get back my deposit ? Does anyone have the answer for me pls..

Leave a Reply

Your email address will not be published. Required fields are marked *