Property Of The Week

**12 MONTH RENTAL GUARANTEE**


Only 6 apartments in Mordialloc, one of Melbourne’s most established bayside suburbs.
  Please note: To access all documentation you need to be registered prior to downloading files. Simply REGISTER HERE to receive your username & password.

Not a member yet? - Register NOW


ITC Diversified Forestry Project 2008

ITC Diversified Forestry Project 2008
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $10,000 (ex GST)
Term of Project 21 years
Research AAG 4 stars
Adviser Edge 4.09 stars
Lonsec Recommended
ATO Product Ruling 2007/72


 

 
ITC Limited is a forestry company with a proud history of sawmilling and value-adding timber for over 80 years, and delivery of forest establishment and management services to retail, corporate and institutional investors since the early 1990s.

Today, ITC is one of Australia’s largest hardwood plantation forestry managers and timber processors, with more than 150,000 hectares of plantations under management across Australia and a solidwood conversion capacity of 250,000 cubic metres per annum.

ITC is active across the forestry and forest products value chain ranging from plantation establishment and management to harvesting, sawmilling, timber and woodchip sales ad export. Activities are managed through two operating divisions: ITC Forestry delivers plantation establishment and management services nationally while ITC Timber processes and value-adds high-grade, quality timbers in Victoria and Tasmania for architectural applications, furniture, flooring and construction materials.

As a wholly owned subsidiary of Futuris Corporation, a Top 200 company listed on the Australian Stock Exchange and owner of the well known rural services business, Elders, ITC has a strong mandate and backing to support its future growth.

The Project

The PDS offers investment in the ITC Diversified Forestry Project 2008.

If you invest in the Project you will be growing four different types of timber for different end products in different locations in Australia. The four different products are Pulpwood, Red Mahogany, Sandalwood and Teak.

The features of the Project are summarised below and more information is available from the Product Disclosure Statement.

Summary of the Project

 
Unit of investment The unit of investment is a Diversified Forestry Unit (Unit) which will comprise a fixed area (Woodlot) of Pulpwood, Red Mahogany, Sandalwood and Teak.

The area of the Woodlot for each Product may vary from property to property depending upon the estimated productivity of the property.
Structure of the investment
A Land Agreement under which ITCPM grants you a lease or profit a prendre over an area of land, or an Agreement to enter into a Land Agreement; and
A Management Agreement under which you appoint ITCPM to establish, manage, harvest and market the timber grown on the area of land on your behalf.
Project locations
Time of planting The Project will be planted between January 2008 and June 2009.
Guaranteed establishment ITCPM, at its expense, will replant areas of dead or missing trees within the first 12 months of planting so that sufficient Seedlings for a viable plantation are established.
Time of harvests The first commercial harvest is expected to be 7 years after planting of the Project from Thinning of Red Mahogany. Further Harvests will occur periodically until the final Clearfall Harvest of Teak expected at age 20.
Fees to be paid $5,500 (incl GST) per Unit is payable for the Establishment Services fee.
A Terms Payment Administration fee of $275 (incl GST) is payable in 11 equal monthly instalments if the Grower elects (and ITCPM accepts) payment of the Establishment Services fee by Terms Payment. Land fees and Management Services fees are deferred and payable as 41.5% (plus applicable GST) of Harvest Proceeds exclusive of GST.
So long as ITCPM is able to effect appropriate insurance on Reasonable Terms, Growers must take insurance against loss or damage by fire or windstorm (for all Products) and theft (for Sandalwood and Teak aged 10 years or more only) and will pay annual insurance premiums.
Terms Payment Subject to the Grower paying an initial instalment of 10% of the amount of the Establishment Services fee Growers can elect to pay the balance of the Establishment Services fee by Terms Payment (subject to the approval of ITCPM) in 11 equal monthly repayments.
Project returns Section 5 of the PDS contains information on how you can make an assessment of the Project returns.
Minimum investment The minimum investment in the Project is two Units which is an amount of $11,000 (incl GST). Further investment can be in increments of one Unit.
Taxation The ATO has issued Product Ruling PR 2007/72 from 25 July 2007 in relation to the Project. The Product Ruling confirms tax deductibility for Establishment Services fees and other costs which may be incurred by Growers from the date of the Ruling as referred to in the Product Ruling.
Pooling of Harvest Proceeds The timber produced from each Product in the Project is pooled and marketed on a collective basis. You will receive a share from each distribution of Project Proceeds, based on the number of Woodlots you hold in the Project.
Insurance So long as ITCPM is able to effect appropriate insurance on Reasonable Terms, ITCPM will arrange insurance against loss or damage by fire or windstorm (for all Products) and theft (for Sandalwood and Teak aged 10 years or more only). Prior to the Clearfall Harvest Commencement Date for each Product, Growers will pay annual insurance premiums. From the Clearfall Harvest Commencement Date for each Product, premiums will be paid as a Cost of Harvest and Marketing for that Product.
Risks The Project is subject to agricultural risks, commercial risks and general risks. Growing different species in different regions will help to spread your investment risk.

The Unit of Investment - the Diversified Forestry Unit

The Unit of investment is a Diversified Forestry Unit (Unit), which comprises one Woodlot for each of the Products, that is Pulpwood, Red Mahogany, Sandalwood and Teak. A Woodlot is the area of land that is assessed to have the capacity to produce the Product Yield for each of the Products as shown in Table .

The minimum investment in the Project is two Units. Further investment can be in increments of one Unit.

Plantations will be established on properties that have been selected on the basis of their capability to contribute to the weighted average Productivity for each region and species. In the case of Pulpwood this will require approximately 67% of the area of Pulpwood Woodlots to be established in Queensland (subtropical region) and the balance in southern Australia (temperate region).
 
TABLE 2: ESTIMATED PRODUCT YIELDS AND AREAS FOR EACH WOODLOT
 
Product Operation Product Yield Per Woodlot Estimated Productivity per hectare Approximate area of one Woodlot
Pulpwood Total Pulpwood Product Yield
Pulplogs from Clearfall at age 10
175 cubic metres Average 240 cubic metres per hectare of pulplogs at Clearfall at age 10 (sub-tropical region) Average 218 cubic metres per hectare of pulplogs at Clearfall at age 10 (temperate region) 0.75 hectares
 
Red Mahogany Pulplogs from Thinning at age 7* 10 cubic metres 495 cubic metres per hectare of pulplogs and sawlogs over an 18 year period, which equates to a mean annual increment of 27.5 cubic metres per hectare per year 0.1 hectares
  Pulplogs from Clearfall at age 18 4 cubic metres
  Sawlogs from Clearfall at age 18 36 cubic metres
  Total Red Mahogany Product Yield 50 cubic metres
Sandalwood Total Sandalwood Product Yield
Heartwood from Clearfall at age 15
600 kilograms 12,000 kilograms per hectare of air dried Sandalwood heartwood at age 15 0.05 hectares
Teak Sawlogs from Thinning at age 9** 5 cubic metres 285 cubic metres per hectare of sawlogs over a 20 year period, which equates to a mean annual increment of 14 cubic metres per hectare per year 0.1 hectares
  Sawlogs from Thinning at age 14 8 cubic metres
  Sawlogs from Clearfall at age 20 15 cubic metres
  Total Teak Product Yield 28 cubic metres

Note:

The age at Thinning or Clearfall refers to the number of years since planting.
The exact timing of some Thinning may be varied to suit the development of the Plantation.
Product Yields for Pulpwood, Red Mahogany and Teak have been rounded.
  * A thinning at age 2 is expected to produce approximately 1 cubic metre per Woodlot that is not expected to have any commercial value.
  ** A thinning at age 4 is expected to produce approximately 2 cubic metres per Woodlot that is not expected to have any commercial value.
 

Simply download an Investment Brochure/PDS above. It’s that easy!
return to previous page