|
|
| THE OFFER: |
The Fund offers a unique
opportunity to invest in the Australian forestry sector through a
diversified portfolio comprising 585 hectares of African mahogany
plantation in the Northern Territory and 1,336 hectares of prime Rural
Land in the Northern Rivers region, New South Wales. |
| INVESTMENT OBJECTIVE: |
The Fund is designed to
enhance investor returns and reduce risk by generating income and
capital gains from multiple sources, including rental income from the
Rural Land owned by the Fund, harvest income from the African mahogany
plantation, and capital growth in the land value of the Rural Land. |
| INVESTMENT TERM: |
Approximately 16 years. |
| OFFER OPENS: |
11 May 2009. |
| OFFER CLOSES: |
11
December 2009, or at
the Responsible Entity's discretion. |
| TARGET SUBSCRIPTION: |
The Responsible Entity
has a target subscription level for the fund of $16.99 million by using
16,990 units. |
| APPLICATION PRICE: |
$1,000 per unit (a
minimum subscription of 5 units, with increments of 1 unit thereafter). |
| TARGET ASSET
ALLOCATION: |
| Fund asset |
Target asset
allocation |
| African mahogany |
55-65% |
| Rural Land |
35-45% |
| Cash |
0-3% |
|
| INSURANCE: |
Willmott Forests (at its
own expense) provides a stocking guarantee on 85% of the initial
planting for the first 12 months and subsequently a replacement and
re-establishment insurance in respect of fire for a further period of
four years. Thereafter, Willmott Forests will use reasonable endeavours
to arrange insurance (at its own expense) in respect of fire for an
agreed value through to clearfell. |
|
FEES: |
A management
fee of 20% of Gross Timber Proceeds is paid to the Responsible Entity
for managing the African mahogany plantation and the Rural Land held by
the Fund. |
| SUPERANNUATION FUNDS
ELIGIBLE: |
Superannuation funds may
invest in the Fund where the mandate of the superannuation fund permits. |
| INDEPENDENT RESEARCH: |
Australian Agribusiness
Group Independent Research with a 4 Star Rating. |
Willmott Forests Limited is a publicly listed (ASX
Code: WFL), quality endorsed company that establishes, manages, harvests,
processes and supplies timber products from plantation grown resources on behalf
of our investors and shareholders.
Willmott Forests has been operating since 1980 and employs over 140 people and
manages in excess of 47,000 hectares of Radiata pine, Silky Oak and She-oak
plantations, ranging from new plantings to mature trees. In addition to our many
years as the most prolific developer of newly established softwood plantations
in Australia, Willmott Forests is becoming a major market participant in
plantations produced for biomass and the high quality timber market.
Over its long history, Willmott Forests has continued to grow and remains an
industry leader with an exemplary reputation in establishing and providing
ongoing plantation management of a variety of species.
Willmott Forests has been involved in forest management since 1980, initially in
North East Victoria and South East New South Wales, where it still operates
today, and more recently on the North Coast of New South Wales and in the
Northern Territory.
Over its many years of experience, Willmott Forests has built a reputation of
reliability, quality and service and has established longstanding and strong
government and community links which they continue to maintain and enhance.
It is expected that continuing restrictions on the supply of tropical native
hardwoods will lead to increased market opportunities for high value timbers
such as African mahogany.
MULTIPLE SOURCES OF INCOME
Income will be distributed on a tax-paid basis (franked distribution) and will
be paid semi-annually determined as at 30 June and 31 December.
CASH
Interest earned from interim cash
investment. |
AFRICAN MAHOGANY
Harvest proceeds from the African
mahogany trees. |
RURAL LAND
Proceeds from sale of Rural Land
with capital growth opportunities. |
RURAL LAND
Regular rental income from Rural
Land with initial gross yield of 8.25%
per annum. |
|
Asset |
Source
of return |
Indicative timing
of Distribution (Year) |
|
Cash |
Interest
earned from interim cash investment |
1 |
|
|
|
|
|
|
African
mahogany* |
Proceeds
from Harvesting |
|
8 |
|
12 |
|
16 |
|
Rural
Land |
Rental
Income |
1 to 16
(distributed semi-annually) |
|
Rural
Land |
Proceeds
from sale of individual parcels of Rural Land |
|
|
10 |
|
14 |
16 |
|
* The
year of income in the above table is anticipated and may vary
depending on a number of factors including timber growth rates, the
actual time of planting and market conditions. |
REGIONS
African mahogany is a premium quality tropical hardwood species, highly sort
after for use in cabinetry and joinery applications.
Disclaimer:
This document contains general information and may constitute
general advice. Its preparation has not taken into account any person’s
particular investment objectives, financial situation or needs. It should not be
relied on as a substitute for financial or other specialist advice. Before
making any investment decisions on the basis of this document, you should
consider, with or without advice, the appropriateness of the contents of this
document in light of your particular investment objectives, financial situation
or individual needs. Willmott Forests Limited is the issuer of the Willmott
Forests Premium Timberland Fund No.1 - Product Disclosure Statement (“PDS”). An
offer of units in the Willmott Forests Premium Timberland Fund No.1(“Fund”) is
contained in the PDS. A copy of the PDS can be obtained above. Units in the Fund may
only be acquired using the application form in or accompanying the PDS.
Investors should consider the PDS before deciding whether to invest in the Fund.
|
|
Simply download an Investment
Brochure/PDS above. It’s that easy! |
|
|
|
|
