30 June 2008 unless
Overview of investment
The PDS offers you the
opportunity to invest in a forestry
managed investment scheme to grow two
(2) species of sandalwood:
Australian Sandalwood – native
Australian Sandalwood grown using
dryland (non-irrigated) techniques. It
is expected that the plantations will
produce commercial yields of sandalwood
from progressive harvesting between 10
to 18 years from planting.
Indian Sandalwood – the highest quality
sandalwood grown on irrigated sites to
be harvested approximately 15 years
after planting. It is expected that the
Indian sandalwood plantations will be
harvested in one event.
Unit of investment
You will be investing in
a Plantation Unit (Unit), or Units. A
Plantation Unit consists of separately
identifiable areas of land within an
Australian Sandalwood plantation and an
Indian sandalwood plantation.
Each Plantation Unit will be 0.5
hectares in area and will consist of one
(1) Woodlot of Australian Sandalwood
with an area of 0.45 hectares and one
(1) Woodlot of Indian Sandalwood with an
area of 0.05 hectares.
You can invest in the
project by paying the Establishment
Services fee of $4,950 (inclusive of
$450 GST) per Plantation Unit.
Other fees and costs
There are no ongoing
annual fees during the term of the
project apart from insurance. A Land fee
and a Management services fee are
payable from your share of harvest
Insurance is payable annually by all
Subject to the approval
of ITCPM and payment of the Terms
Payment Deposit, you can elect to pay
the Establishment Services fee by Terms
Payment in 11 equal monthly instalments.
The AYO has issued
Product Ruling 2008/27 in relation to
the Project. The Product Ruling confirms
tax deductibility for Establishment
Services fees and certain other costs
which may be incurred by you as referred
to in the Product Ruling.
The minimum investment
in the Project is one (1) Unit. Further
investment can be made in increments of
one (1) Unit.
There is no minimum
level of subscription that must be
raised for the Project to proceed. The
Responsible Entity is able to operate
the Project regardless of the number of
The project will
comprise two closely related species of
Australian Sandalwood (Santalum
spicatum) is native to Western
Australia and South Australia. During
the early years of settlement in Western
Australia sandalwood was an important
export. Sandalwood is still harvested
from native forests today but supply is
limited. In recent years there has been
a significant area of Australian
Sandalwood established in plantations in
the south west of Western Australia.
Indian Sandalwood (Santalum album)
is native to India and Indonesia. It is
generally regarded as the highest
quality sandalwood because of its high
oil content and the quality of its oils.
Supply is limited from native sources.
Since 1999 there has been a significant
area of Indian Sandalwood established at
Kununurra in Western Australia. ITC is
one of the major plantation managers of
Having different species in the
investment diversifies the risk of
relying on a single species in a single