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The Offer
The success of diversification is well documented.
This opportunity offers just that – diversification
of species, markets, location of plantations and
managers.
The 2007 Premium Forestry Blend is an opportunity to
become involved as Growers in two Projects which
uniquely combine three timber species and which are
to deliver three distinct sources of potential
income to Growers commencing as early as year 2/3.
The timber species involved are as follows:
Pine – for softwood sawlogs and pulplogs.
The primary use of softwood sawlogs sold in
Australia is the production of structural sawntimber
used in house construction and this market is
dominated by softwood.
Income anticipated in years 13, 18 and 25.
She-Oak – a fast growing biomass species
that can be converted into charcoal, high density
pellets or renewable energy. It is anticipated that
the She-Oak will be harvested at two to three
year intervals (it regenerates after harvest) and
provides regular income until at least year 9.
Silky Oak – a high valued sawn hardwood
timber resource harvested at years 10 and 15
suitable for furniture and decorative veneers.
Under the 2007 Premium Forestry Blend you would
become a Grower in the Willmott Forests Project (ARSN
089 379 975) and a Grower in the BioForest
Sustainable Timber and Biofuel Project 2007 (ARSN
124 133 535).
Returns
It is envisaged that you will
receive proceeds from the sale of
your timber when the trees are
harvested in or about years 2/3, 5,
7 and 9 (from the She-Oak),
years 10 and 15 (from the Silky
Oak) and years 13, 18 and 25
(from Pine).
Both Projects will be subject to the
normal risks associated with
commercial plantation forestry and
the Managers do not guarantee any
particular return to Growers.
Application Price and Fees
Application Price
The application price (including
GST) of Woodlots and Timberlots is
set out below:
• Woodlots in the Willmott Project –
$4,290 per Woodlot.
• Timberlots in the BioForest
Project – $5,500 per Timberlot.
You must apply for one Timberlot for
every 2 Woodlots. Each combination
of 1 Timberlot and 2 Woodlots is
called a “Premium Blend Woodlot” (“PBW”).
The application price of each
“Premium Blend Woodlot” is $14,080
(including GST) and the minimum
investment is 3 Premium Blend
Woodlots (“PBWs”) (or $42,240
including GST). For details refer to
the table below.
The 2007 Premium Forestry Blend
|
Number
of PBWs
(Minimum Investment of 3 PBWs) |
Total $
(Inclusive of GST) |
Number of Woodlots in the Willmott Project |
$
(Inclusive of GST) |
Number of Timberlots in the BioForest Project |
$
(Inclusive of GST) |
|
3 |
$42,240 |
6 |
$25,740 |
3 |
$16,500 |
|
4 |
$56,320 |
8 |
$34,320 |
4 |
$22,000 |
|
5 |
$70,400 |
10 |
$42,900 |
5 |
$27,500 |
|
6 |
$84,480 |
12 |
$51,480 |
6 |
$33,000 |
|
7 |
$98,560 |
14 |
$60,060 |
7 |
$38,500 |
|
8 |
$112,640 |
16 |
$68,640 |
8 |
$44,000 |
|
9 |
$126,720 |
18 |
$77,220 |
9 |
$49,500 |
|
10 |
$140,800 |
20 |
$85,800 |
10 |
$55,000 |
|
11 |
$154,880 |
22 |
$94,380 |
11 |
$60,500 |
|
12 |
$168,960 |
24 |
$102,960 |
12 |
$66,000 |
|
13 |
$183,040 |
26 |
$111,540 |
13 |
$71,500 |
|
14 |
$197,120 |
28 |
$120,120 |
14 |
$77,000 |
|
15 |
$211,200 |
30 |
$128,700 |
15 |
$82,500 |
|
16 |
$225,280 |
32 |
$137,280 |
16 |
$88,000 |
|
17 |
$239,360 |
34 |
$145,860 |
17 |
$93,500 |
|
18 |
$253,440 |
36 |
$154,440 |
18 |
$99,000 |
|
19 |
$267,520 |
38 |
$163,020 |
19 |
$104,500 |
|
20 |
$281,600 |
40 |
$171,600 |
20 |
$110,000 |
|
30 |
$422,400 |
60 |
$257,400 |
30 |
$165,000 |
|
40 |
$563,200 |
80 |
$343,200 |
40 |
$220,000 |
|
50 |
$704,000 |
100 |
$429,000 |
50 |
$275,000 |
Taxation Treatment/Product Ruling
The application price for Woodlots and Timberlots is expected to be 100% tax
deductible. The GST component of the application price for Woodlots and
Timberlots will be either tax deductible or able to be claimed as a GST input
tax credit, depending on the individual circumstances of the Grower.
The Australian Taxation Office has issued Product Ruling 2006/128 in respect of
the Willmott Project and Product Ruling 2007/82 in respect of the BioForest
Project that confirms the tax treatment of the Projects for Growers who enter
the Projects on or before 30 June 2008 and after 30 June 2007.
The Australian Taxation Office product rulings confirm that the tax benefits are
available to Growers provided the Projects are carried out in the manner
described.
Payment
Options
Cash
The minimum investment in the 2007 Premium Forestry Blend is for 3 Premium Blend
Woodlots (PBWs). The cost of 3 PBWs is $42,240 (including GST). Investments
using the Cash Payment Option will require two cheques – one payable to Willmott
Forests and the other to the custodian of the BioForest Project. Please refer to
the Method of Payment Form on page 23 for specific details.
Terms
Willmott Forests Limited offers
12 months interest free terms to
approved applicants for Timberlots and Woodlots.
Terms Repayment
Repayments are due on the last business day of each month in Victoria commencing
at the end of the following month after acceptance into the relevant Projects.
Finance
MIS Funding No.1 Pty Limited will provide approved Growers with a finance
facility for 100% of their investment in Woodlots and Timberlots under the 2007
Premium Forestry Blend (including GST). The actual loan options are:
Principal and interest terms:
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Indicative rates only |
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3 Years – |
at 11% interest p.a. |
All principal and interest
options are available with a 36 month Interest Only Period. |
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5 Years – |
at 11% interest p.a. |
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7 Years – |
at 11% interest p.a. |
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10 Years – |
at 11% interest p.a. |
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12 Years – |
at 11% interest p.a. |
The above interest rates are indicative interest rates only and
based on the relevant “MIS Funding No.1 Cost of Funds (fixed rate)” rate as at
11 May 2006. The actual rate will be set and fixed for the period of the loan on
30 June in the financial year of investment. For further details please refer to
the Willmott Forests Project PDS and the BioForest Project PDS and any relevant
supplementaries.
Finance Repayment
Repayments are due on the last business day in Victoria of each month commencing
in July following the financial year of the investment.
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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