Plantations Winegrape 2007 Project
|Term of Project
ATO Product Ruling
||1800 015 023
Gunns Plantations Ltd … One of Australia’s
leading agribusiness products companies.
Investors become Growers in a 20 year Winegrape Project located at Coombend, in an established premium winegrape growing region on the east coast of Tasmania. The minimum investment in the project is one Vinelot with an area of 0.2 ha, which will require an initial outlay of $17,325 (including GST).
The Original PDS and the Supplementary PDS constitute a retail offer and the Australian Tax Office (ATO) has issued Product Ruling PR 2007/75 applying to Late Growers, being those investors who apply for acceptance as Growers in the Project between 22 August 2007 and 15 June 2008.
This project is based on the production of
Tasmanian grown premium and ultra premium cool climate winegrapes;
wine grapes are highly sought after;
Tasmania is NOT
suffering from a wine glut;
The prices for
Tasmanian winegrapes have consistently increased
over the last four years.
Growers in each of the
previous winegrape projects enjoy the benefit of an
off-take agreement with Tamar Ridge Estates, a
wholly owned subsidiary of Gunns Ltd (Tasmania's
largest vineyard manager and second largest winery)
for the life of the project (20 years)
GPL will contract the
management of Grower's vineyards to Tamar Ridge
Estates' professional management team, headed up by
CEO, Dr Andrew Pirie (AM).
ATO Product Ruling PR
2006/164 which confirms the 97% tax deductibility of
the project's Application Fee (over 3 years).
Special finance terms
are available from Gunns Finance Pty Ltd until 28th
both Lonsec and AdviserEdge.
INTRODUCING GUNNS PLANTATIONS
WINEGRAPE PROJECT 2007
GPL is proud to be offering investors the opportunity to
become growers of Tasmanian cool climate wine grapes in the
Gunns Plantations Limited Winegrape Project 2007 (the
Project). By participating in the Project prior to 15 June
2007, you become an Early Grower of 0.2 hectare Vinelots in
one of the most competitively priced Projects of its kind in
the market. The 0.2 hectare Vinelot will be located at the
picturesque Coombend vineyard on the East Coast of Tasmania,
consisting of parcels of land of both Existing Vineyard
(established during 2005-2006) New Vineyard (to be
established in late 2007).
Gunns Limited (Gunns) was established in 1875 in
Tasmania and has a 132 year history. It is listed in the
S&P/ASX 200. Gunns is Australia’s largest hardwood forest
products company and has a market capitalisation of circa
AUD 1.1 billion (January 2007). Gunns’ operations comprise
of 8 main business divisions, being plantation, agribusiness
investment, timber, veneer, retail, woodchips, construction
and viticulture. The company currently owns over 200,000
hectares of freehold land, which includes approximately 311
hectares of vineyard estate.
GUNNS PLANTATIONS LIMITED
Gunns Plantations Limited (GPL) is a wholly owned
subsidiary of Gunns, established for the specific purpose of
building a resource business for third party investors. GPL
was first established in November 1999 and since that time
has established 10 managed investment schemes with over $314
million of funds under management. GPL will draw upon the
considerable skills and experience of the Gunns wholly owned
wine business Tamar Ridge Estates for establishing and
maintaining your Vinelots.
Tamar Ridge Estates is a division of Gunns that includes
a multiple award winning cool climate winery. Gunns
purchased Tamar Ridge Estates in March 2003, which included
63 hectares of land under vines and the award winning winery
nestled in the Tamar Valley wine region. GPL proposes to
delegate all Vineyard management obligations to the Tamar
Ridge Estates division of Gunns and Gunns will be contracted
to prepare all of the vines required for the Project at its
VINA (Vine Industry Nursery Accreditation) certified
Application and Ongoing Fees
This Project is one of the most competitively priced
projects of its kind with Vinelots priced at $17,325 (inc.
GST). In the unlikely event of a harvest in Year 1, the
Grower will be charged the Year 1 Harvest Fee. In Years 2
and 3, GPL retains any Grape Sale Proceeds in lieu of
charging the Vine Right Fee, the Maintenance and Harvest Fee
and the Sales Commission (Ongoing Fees) and Growers only
contribute the GST component of the Maintenance and Harvest
Fees in Year 2 (approx $150 per vinelot) and Year 3 (approx
$315 per vinelot), which are claimable for those Growers
registered for GST.
Payment of the Ongoing Fees will be deducted from your Gross
Proceeds Entitlement from Year 4.
How & When Paid
$17,325 per Vinelot
Year 1 Harvest Fee
Cost to GPL of services + 10% (plus GST)
Deducted from any Grape Sale Proceeds.
Vine Right Fee
GPL is entitled to $550 per Vinelot per Year
Included in Application Fee for Years 0-2. Included in Maintenance and Harvest
Fee in Year 3. Deducted from Gross Sale Proceeds from Year 4
Maintenance and Harvest Fee
GPL is entitled to a max. $3,300 per Vinelot per
Year - actual cost estimated to be $2,180 per Vinelot per Year
Deducted from Grape Sale Proceeds from Year 4,with Growers required to
contribute approx. $150 in Year 2 and $315 in Year 3 (being the GST component of the Maintenance and Harvest Fees)
2.2% of Gross Grape Sale Proceeds
estimated to be approximately $88 per Vinelot.
Annually from first commercial
harvest (Year 4) until Year 20. Offset against Gross
Proceeds Entitlements prior to any distributions
It is anticipated approx. 62% of your Application Fee will be tax
deductible in the financial year in which it is paid, with 18% and
16% of the Application Fee being deductible in the following 2 yrs
respectively. 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.
Vinelots are anticipated to reach their full production
capacity in Year 5, when the average expected yield will be
approximately 2.2 tonnes per vinelot per year . Grape sale
proceeds for all Growers will be pooled. Where a Grower’s
Gross Proceeds Entitlement exceeds their liability to pay
ongoing fees, distributions will be paid.
THE TAMAR RIDGE EXPERIENCE
The acquisition of Tamar Ridge Estates brings a great
deal of knowledge and experience in viticulture, winery
management and wine marketing, while also adding to the
diversity of Gunns’ operations. Tamar Ridge Estates’
vineyard is located in the Tamar Valley wine region, 45
kilometres north of Launceston. The company owns 75 hectares
of vineyard that is bearing and producing quality cool
climate grapes for the premium and ultra premium wine
The winery is capable of processing over 1,500 tonnes of
grapes, and is continually being upgraded with the latest
technologies to handle the expansion of grape production.
The Tamar Ridge Estates winery processes the fruit from its
own vineyard as well as from other local vineyards. In 2007
it expects to process over 2,200 tonnes.
Tamar Ridge Estates currently produces a range of still and
sparkling wines in the premium and ultra premium categories,
including the following varietal wines: Sauvignon Blanc;
Pinot Noir; Chardonnay; Riesling; Gewurztraminer; and Pinot
Gris. Well known brands of Tamar Ridge Estates include Tamar
Ridge, Devil’s Corner, Coombend, Rosevears, Notley Gorge,
Pirie Estate and Pirie South.
The Chief Winemaker and CEO at Tamar Ridge Estates is Dr
Andrew Pirie. Dr Pirie is widely known as one of the
pioneers of the modern Tasmanian wine industry. Dr Pirie was
awarded a Member in the Order of Aus tralia (AM) for his
contribution to the wine and tourism industries in Tasmania.
Tamar Ridge Estates also contracts the services of Smart
Viticulture to advise ways to achieve the maximum vineyard
performance and wine quality. The principal of that business
is Dr Richard Smart, one of the world’s foremost
Dr Smart has developed a highly successful technology for locating sites
suitable for growing exceptional quality cool climate winegrapes that
are ideal for the production of premium and ultra premium wine. All
of the project sites have been identified by Dr Smart as sites that may
potentially grow icon quality Pinot Noir and Sauvignon Blanc and become
regions that will be world famous for the quality of grapes produced.
The technology Dr Smart uses for land identification compares climate
data, in this case for selected New Zealand vineyard regions, to climate
data of Tasmania. This process is known as homoclime mapping. Using
the homoclime mapping technology, Dr Smart has been able to identify
and secure the most suitable sites for producing exceptional quality cool
climate grapes for this Project.
Following in New Zealand’s Success
Parts of Tasmania have a climate similar to both islands of New Zealand.
This is not unexpected since these places have climates influenced by the
surrounding sea. Their latitudes are also similar: for example Launceston in Tasmania and Blenheim in the Marlborough wine region of New Zealand
are at a similar latitude of 41°30’S. Marlborough has created a worldwide
reputation for its wines, especially for their varieties of Sauvignon Blanc
and Pinot Noir.
Quality Fruit Attracts Premium Prices
Despite widespread reports of winegrape overproduction across
Australia, the Tasmanian Government Department for Primary
Industries and Water has found that Tasmanian producers have
received an increase in the average price paid for purchased grapes
over the past five years. In 2006, the Tasmanian Department of
Primary Industries and Water’s Grape Crush Report revealed the
average price per tonne for Tasmanian winegrapes had risen to
$2,644 for red winegrapes and $2,384 for white winegrapes.
Since its inception, Tamar Ridge Estates has been rewarded for
continuous quality by amassing in excess of 25 trophies and over 310
medals at wine shows throughout Australia (as at January 2007).
Tamar Ridge Estates has also been awarded most successful exhibitor
at four Tasmanian Wine Shows and has won medals at the prestigious
London International Wine Challenge. Growers can be confident that
their Vineyard will be professionally managed by experienced vineyard
managers in accordance with the latest viticultural techniques.
Who Purchases my Grapes?
GPL is committed to entering into negotiations for the sale of and
selling harvested grapes produced on your Vinelot for the term of
the project. GPL has already formed relationships with grape buyers,
including Tasmania’s own Tamar Ridge Estates, and is confident that
it will be able to achieve a fair market price for the grapes produced
on behalf of Growers.
If GPL as Manager enters into an agreement for the sale of the Grapes
to Tamar Ridge Estates, then they will purchase the Grapes on terms
no less favourable to the Grower than those set out in the draft Grape
The information contained in this Project Profile is not financial product advice. This Project Profile does not take into account the investment objectives, financial situation and
particular needs of any potential investor. Accordingly, before you invest you should read the PDS and any other supplementary PDS in full. We also recommend that before
making a decision to invest you consult a financial adviser or other professional adviser. Allocations of Vinelots will only be made to successful applicants that have properly
completed an Application and Power of Attorney Form attached to the PDS, dated 19 January 2007. The Product Ruling granted by the Australian Taxation Office is only binding
on the Commissioner insofar as the Project is carried out in an identical manner to that identified in the Product Ruling. It is in no way a guarantee of the commercial viability
of the Project.
Simply download an Investment
Brochure/PDS above. It’s that easy!
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