Gunns Plantations Walnut Project No 2

Gunns Plantations Walnut Project No. 2
Cash Rebate	8.00%
Closing Date	CLOSED
Minimum Investment	$5,840 (ex GST)
Term of Project	25 years, plus 2 year extension if IRR over the Project fails to exceed 9.5%
Research		AAG
		Adviser Edge
		Lonsec
ATO Product Ruling	2007/89

Telephone:	1800 015 023
Fax:	(03) 6333 0646

Gunns Plantations Limited Walnut Project No. 2

GPL is proud to be releasing the GPL Walnut Project No. 2 (ARSN 125 191 531). GPL is the Responsible Entity of the Project.

Gunns are now accepting applications for investment in the 2007/2008 financial year under the Product Disclosure Statement (PDS) dated 30 April 2007 and Supplementary PDS dated 1 November 2007. A Product Ruling (PR 2007/89) has been issued by the Australian Taxation Office (ATO) confirming 100% Tax Deductibility of the Application Fee for the Project for Growers who enter the Project before 13 June 2008 (refer to the Product Ruling for full details - where the Project is not carried out in accordance with the Product Ruling the Commissioner may disallow any deductions).

A summary of the Project is outlined below.

This project must close for applications on the 13 June 2008.

Overview
Investors are invited to participate in the Project by acquiring an Orchard Right over a minimum of one (1) 'Walnut Lot' (0.2 hectares), comprising of approximately 62 Walnut trees, by paying the application fee of $6,424 (inc GST) per Walnut Lot. Each Walnut Lot will consist of 0.07 ha of Existing Orchard (planted prior to January 1 2007) and 0.13 ha of New Orchard (established by 30 September 2007). Payment of the Application Fee constitutes full payment of the Initial Services. All of the Initial Services are performed on or before June 30 2008. Growers do not own the Walnut orchard infrastructure; this is paid for and owned by Gunns. As a result Growers will not have a residual interest in the orchards at the end of the Project Term (25 years). Growers acquire an exclusive right to use the infrastructure and the Walnut trees (and enjoy the benefit of the Walnuts) on the Walnut Lots through the Orchard Right Agreement. Growers will benefit from an off-take agreement with Webster Limited, Australia’s largest Walnut Orchard Manager.

Application Fee	$6,424 (incl GST)
Orchard Right Fee	$220 per annum (incl GST)
Operating Fee	Incurred in 3 stages: • Years 1-2: $990; • Years 2-7: $1320 plus 23.1% of the Gross Proceeds Entitlement; • Years 8-25: $1485 plus 23.1% of the Gross Proceeds Entitlement
NB: These fees are all GST inclusive and are subject to indexation from 30 June 2008.

Walnut Lot Details

Term	25 years
Species / Varieties	Juglans regia (English Walnut) - Ashley, Chandler, Howard, Lara, Serr, Tulare, Vina and other varieties
Nature of Investment	Premium quality in-shell Walnuts
Location	The Riverina; Goolgowi (near Griffith, NSW)
First Harvest (approx)	Year 2 (2010) for Existing Orchard Year 3 (2011) for New Orchard
Peak Yield (approx)	From Year 7 (2014 – 1,121 kgs/Walnut Lot )
Guaranteed Stocking Level	As close as possible to 100% of the average initial planting density as practicable for the first 3 years of the term
Insurance	Available upon request at Grower's expense (+10% service charge). This will be crop insurance only. Gunns Limited is responsible for insuring the orchard infrastructure

Growers pay the Application Fee in Year 0 of the Project (prior to 13 June 2008).

Growers will be invoiced for the full ongoing fees in Years 1 to 3. It is envisaged that ongoing fees will be offset against Walnut sale proceeds from Year 4 onwards. Where ongoing fees exceed the Grower’s entitlement to Walnut sale proceeds an invoice will be sent for the shortfall.

Fee Facility

Growers may elect to enter into a “Fee Facility” with Gunns Finance Pty Ltd to finance the full amount of the Ongoing Fees in Years 1 to 4 of the Project. In the event that there are any harvest proceeds payable in Years 1 to 4 and a Grower has elected to enter into the Fee Facility, These sales proceeds will revert to the Grower.

Under the Fee Facility, Growers will draw down the amount of the Ongoing Fees in each Year of the Project and be required to pay equal monthly principal and interest repayments of the balance each year such that the outstanding balance is repaid in Year 10. Interest is charged at 10.5% p.a.

Finance

Growers may also elect to defer payment of the Application Fee by entering into a 12 months interest free Terms Arrangement with GPL.

Finance may also be available from Allco Managed Investments Ltd or Gunns Finance Pty Ltd.

Product Disclosure Statement PDS

Supplementary PDS

P & I Finance: Nil Deposit Reduced Interest Rate Finance Package

Walnut Terms Arrangement

Allco Finance Package 2007

Allco Schedule of Projects & Loan Details

Other Gunns Projects:

Winegrape 2007 Project

Woodlot 2008 Project

GPL and Gunns Finance Pty Ltd are currently offering special finance arrangements as per those described below for investment.

12 month Interest Free Terms Arrangement:
(for investments by individuals up to $300,000) - see the Supplementary PDS for application details.

automatic approval! *
Interest free;
10% deposit;
equal monthly repayments commencing the month after the month of acceptance.

12 month Interest Free Terms Arrangement:
(for those investments by companies or those investments over $300,000)

Interest free;
10% deposit;
equal monthly repayments commencing the month after the month of acceptance.

Gunns Finance Pty Ltd P&I finance:

nil deposit!
principal and interest loans for 3, 5, 10 and 15 year terms;
competitive interest rate of 10.5%;
equal monthly repayments commencing July 2008.

Tax Deductibility

Investing in the GPL Walnut Project No. 2, entitles you to claim a tax deduction of 100% of the Application Fee in the financial year in which it is paid. It is also anticipated that 100% of the Ongoing Fees you pay will be tax deductible in the financial year in which they are paid.

In addition you will be entitled to a straight line depreciation deduction at 13% p.a. from Year 4 of the capital expenditure incurred in establishing the Walnut Trees. GPL will advise you of the deductible amount at the time.The tax deductibility of this investment will depend on your particular tax circumstances and you should seek professional advice. Please refer to Product Ruling PR 2007/89 for full details. A copy of the Product Ruling can be obtained from our website or the ATO.

Management of your Walnut Lot

Your Walnut Lot will be managed by GPL who will draw upon the considerable skills and experience of Webster Limited, Australia’s largest Walnut Orchard Manager. Webster Limited is Australia’s fourth oldest company dating back to 1831.

Webster Limited have been establishing and managing Walnut Orchards for over 10 years and are experienced in all aspects of orchard management including nursery production. It should be noted however that Webster is a sub contractor and not the issuer of the Project and does not in any way guarantee the income or performance of the Project.

Sale of Your Walnuts

GPL, as agent for the Growers, has agreed to market, enter into negotiations for the sale of and sell the Walnuts on the open market. The Walnuts are to be sold at a fair and reasonable price. GPL has negotiated an off-take agreement for Growers’ Walnuts with Webster. There are circumstances in which Webster may not acquire your Walnuts however. For example, if GPL as your agent, receives a higher offer for your Walnuts from a third party and Webster does not match that offer, GPL may sell your Walnuts to the third party for the higher offer.

Simply download an Investment Brochure/PDS above. It’s that easy!


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