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Gunns Plantations Woodlot 2008 Project

Gunns Plantations Woodlot 2008 Project
Cash Rebate 8.00%
Closing Date CLOSED
Minimum Investment $6,200 (ex GST)
Term of Project 14 years - Option 1
21 years - Option 2
26 years - Option 3
Research AAG Option 1 4 stars
Option 2 4 stars
Option 3 4 stars
Adviser Edge Option 1 4 stars
Option 2 4 stars
Option 3 4 stars
Lonsec Option 1 Recommended
Option 2 Recommended
Option 3 Recommended
ATO Product Ruling 2007/97 (Option 1)
2007/98 (Option 2)
2007/99 (Option 3)

GPL is proud to be releasing its eighth Woodlot Project offering, the GPL Woodlot Project 2008 (ARSN 128 933 237). The Project is open for investment in the 2007/2008 financial year. GPL is the responsible entity of the Project.

Product Rulings (PR 2007/97, PR 2007/98 and PR 2007/99) have been issued by the Australian Taxation Office (ATO) confirming 100% tax deductibility of the the fees for the Project (see below).

A summary of the Project is outlined below:

Overview

Current Finance Offers…

12 month Interest Free Terms Arrangement:
(for individuals investing up to $300,000, applications can be made via the PDS)

  • automatic approval! *
  • 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 (15 year term only available in Option 2 and 3);
  • equal monthly repayments commencing the month after the month of acceptance.

12 month Interest Free Terms Arrangement:
(for investments over $300,000 or by companies or trusts, applications must be made under the seperate Terms Arrangement Pack)

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

Investors are invited to participate in the Project by obtaining a Forestry Right over a minimum of 1 Woodlot (1 hectare), comprising of approximately 1,100 seedlings for the Eucalypt Planting Options (Options 1 and 2) and 1,333 seedlings for the Pinus radiata Planting Option (Option 3). There are 3 attractive investment options with the low priced application fee of $6,820 (inc. GST) per Woodlot and no ongoing fees (other than pruning fees for Option 2).

  Option 1 Option 2 Option 3
Application Fee $6,820 $6,820 $6,820
Pruning (Year 4 approx) N/A $736* N/A
Pruning (Year 6 approx) N/A $788* N/A
Pruning (Year 7 approx) N/A $840* N/A
Rent, maintenance and sales commission 9% of any wood sale
proceeds (inc GST)
9% of any wood sale proceeds (inc GST) 9% of any wood sale proceeds (inc GST)
* Indexed annually to CPI and inclusive of GST. These are baseline costs only.

Planting Options

An investor has a choice of any mix of 3 planting options as follows:

  Option 1 Option 2 Option 3
Term 13 years 20 years 25 years
Species Eucalyptus nitens or Eucalyptus globulus Eucalyptus nitens Pinus radiata (Radiata Pine)
Nature of Investment Pulpwood High Quality Clearwood Veneer & Pulpwood High Quality Sawlog & Pulpwood
Location Tasmania Tasmania Tasmania and the Southern Highlands region of New South Wales
Harvest Times (approx) Year 9 (thinning) and Year 13 (clearfell) Year 9 (thinning) and Year 20 (clearfell) Years 13 and 18 (thinning) and Year 25 (clearfell)
Guaranteed Seedling Level 90% of the average initial planting density for the first 2 years 90% of the average initial planting density for the first 2 years 90% of the average initial planting density for the first 2 years
Insurance Available upon request at Growers' expense Available upon request at Growers' expense Available upon request at Growers' expense
Off-take agreement Yes. With Gunns Limited Yes. With Gunns Limited With Gunns Limited for all wood grown in Tasmania. Other off-takes being negotiated for saw logs and pulp wood grown in NSW.

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.

Limited finance may also be available from Gunns Finance Pty Ltd.

Please refer to the finance options available for download above.

Tax Deductibility

If you invest in the Project you are entitled to claim a tax deduction for 100% of the application fee and any pruning fees. Please refer to the Product Rulings (PR 2007/97, PR 2007/98 and PR 2007/99) for full details. PR 2007/97 applies to Option 1, PR 2007/98 applies to Option 2 and PR 2007/99 applies to Option 3.

* If the Project is not operated in accordance with the Product Ruling then the Commissioner of Taxation may disallow any deductions claimed. The Product Ruling is also not an endorsement of the commercial viability of the Project. Any finance arrangements other than those offered by Allco Managed Investments Ltd, GPL or Gunns Finance are outside the scope of the Product Ruling.

Management of your Woodlot

Your Woodlot will be managed by GPL who will draw upon the considerable skills and experience of Gunns Limited. Gunns Limited is experienced in all aspects of land selection, plantation establishment, plantation management and harvesting with over 40 years experience in plantation management. Gunns Limited is Australia's oldest and largest fully integrated forest products company that has a 133 year heritage and has a market capitalisation of over $1.5 billion (December 2007.

Marketing/Sale of your Wood


GPL will act as your agent in selling the trees produced on your Woodlot. Gunns Limited is committed to entering into a wood sale agreement for purchase of all of the trees produced under Options 1 and 2 of the Project and all wood grown under Option 3 of the Project in Tasmania. GPL is using its prominent position in the forestry plantation sector to negotiate the sale of all other wood grown under Option 3 in NSW on the best available commercial terms.

For Options 1 and 2, Gunns agrees to pay the greater of the prevailing market stumpage price of the day or the 'floor price'. The floor price is a mechanism that provides a simple formula to determine the minimum price that must be paid at the time of harvest, which is linked to the price of the final value added end product. For Pulpwood the floor price is calculated as 39% of the woodchip sale price expressed in green metric tonnes. If harvest were to occur today the floor price would be $33.88 per green metric tonne. For Veneer the floor price is calculated as 7% of the saleable veneer value. This would equate to a floor price of $121.80 per green metric tonne if harvested today. Gunns agrees to pay the greater of the prevailing market stumpage price or the floor price.

For Option 3, GPL is committed to selling Growers’ wood on the best available commercial terms to major consumers of forest products in the areas in which the wood is grown. In Tasmania, Auspine and Frenchpine are long established sawmilling companies who merged in 2006 and presently consume over 400,000 m3 of softwood saw logs per annum. Gunns Ltd recently acquired a controlling interest in Auspine and can now guarantee the off-take of Growers' wood in Tasmania. In the Southern Highlands region of New South Wales, there are multiple major consumers of both soft wood pulp logs, including Visy Industries and Norske Skog, and saw logs, including Hyne and Son and Weyerhauser Co. The forecast growth and planned expansions of these operations suggest that there will be a long term deficit in softwood log supply. GPL is confident that the wood Grown under Option 3 in NSW of this Project will be readily sold into these resource deficient forest products markets.


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