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Macquarie Almond 2007 Investment (Late Growers)

Macquarie Almond Investment 2007
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $7,600 (ex GST)
Term of Project 22 years
Research AAG 4 stars
ATO Product Ruling 2007/80

 
An innovative almond investment

The Macquarie Investment Banking Group (Macquarie) has been managing retail Agribusiness investments since 2003 and is offering investors the opportunity to benefit from this experience with the Macquarie Almond Investment 2007. The Macquarie Almond Investment 2007 is the second Almond Investment on offer and represents an exciting offer in a growing industry.

The Macquarie Almond Investment 2007 seeks to maximise returns and is designed to reduce the downside risk.

The following information applies to investors who are issued Interests before 15 June 2007.

Potential investor benefits:
Annual yield — potential to earn annuity income after year three. Almonds are an annual crop which are expected to produce their first harvest after around three years.
Portfolio diversification — almond prices have historically had low or negative correlation to the returns of traditional asset classes such as shares and residential property1.
Large scale orchard — your investment will form part of a large scale, commercial almond orchard that is designed to achieve economies of scale in an efficient, growing industry.
Expert management team — a dedicated team with expertise in funds management and horticulture. Macquarie provides a long term commitment to the management of your investment.
An investment that aims to reduce downside risk — through a combination of low upfront costs and a unique ongoing fee structure which varies with return, so your fees are lower when returns are lower. In addition, insurance will be sought to cover any damage to your almond trees2.
Access to a range of finance options to help fund your investment — by borrowing up to 100% of your application payment and your subsequent contributions up to 30 June 2011, through a loan facility from a Macquarie Group company or Momentum3.
Tax certainty — 100% tax deduction for eligible investors for all project costs (for Early Growers) through ATO Product Ruling 2007/4*.
Joint venture applicants — ability to share your investment with a non-working spouse, another dependant or an entity like a family trust.
Supporting rural Australia — represents an investment in rural Australia which will create employment opportunities and support the local rural economy.
1 Past performance is not a reliable indicator of future performance.
2 Subject to certain conditions.
3 Subject to the Lender’s normal lending criteria, see Section 9 ‘Investment Loan’ of the PDS.
* If the conditions in the Product Ruling are met. See Section 8 ‘Tax Treatment’ of the PDS for details. You can view a copy of the Product Ruling above.

Why invest in Almonds?

Almonds are one of the most versatile nuts and have many health benefits which are well documented. The promotion of almonds as a nutritional product and as an ingredient in a wide variety of foods appears to have been successful in expanding the market size, and there is continued strong demand for almonds from Asian countries. In fact, the global market for almonds has experienced both supply and demand growth of over 6% per annum over the last 11 years. Future consumption is expected to meet projected global production increases.

Although the Australian industry only represents 3% of global production, it is growing rapidly. Furthermore, Australia enjoys a number of advantages over other producing countries, such as a more reliable climate, consistent and higher nut quality and seasonal advantages.

How the investment works

The Macquarie Almond Investment provides you with the opportunity to grow, harvest and sell almonds with expert support at all stages of the process.

As the investor, you:
carry on a business of growing, harvesting and selling almonds;
hold a licence over an identifiable hectare almond lot and rights to use orchard assets; and
appoint the Responsible Entity, Macquarie Alternative Assets Management Limited as manager of your business.

Project Lifecycle:
in the first year of the investment, your trees will be planted and carefully looked after by a team of experts;
during the third year, bees will be introduced for pollination and the trees should bear their first commercial crop. Trees should reach full maturity after approximately seven years from your initial investment date;
during the harvest, your almonds will be pooled with those of the other investors for cracking and hulling;
kernels are transported to Almondco for processing, packaging and sale.

Location of the orchard

The orchard will be located on prime horticultural land approximately 18km south-east of Robinvale and 8km from the Murray River, in the Sunraysia district of north‑west Victoria. The site is adjacent to the 500 hectare orchard developed for the Macquarie Almond Investment 2006.

Who may be interested in this investment?

This investment may be suitable to you for a number of reasons, including if you: 

are looking to diversify your investment portfolio;
want potential for annuity income - possible after year three;
have adequate cashflow to meet ongoing payment obligations;
are looking for potentially tax efficient investment solutions;
want the potential to earn income outside superannuation;
have a long term investment horizon;
have reliable income stream but limited upfront capital (if borrowing to invest).

Risks

As with any investment there are risks to be considered, and as this is a long term agricultural investment, many variables may affect the performance of the investment. As well as general investment risks, risks specific to the project include agriculture and environmental risks as well as risks associated with price of the almonds. The risks are set out in the Product Disclosure Statement (PDS) and as usual we recommend you read this document and obtain your own financial, legal and tax advice.

Macquarie Almond Investment 2007 — at a glance 

Project term Approximately 23 years
Minimum investment One interest (equals one almond lot, approximately hectare of land)
Application type Early Growers — applications accepted on or before 15 June 2007
Amounts payable in 2007 The fees in the table below are applicable to Early Growers for the first year of the project only.
Additional annual fees apply to subsequent years including variable costs. You should refer to section 7 ‘Fees and Other Costs’ in the PDS for more information on fees.
 
Fee Amount per interest
(incl GST)
Payable Tax deductible* Can be financed
Application payment $6,600 On application Yes - 100% Yes - up to 100%
Fixed management and licence fee $1,760 31 October 2007 Yes - 100% Yes - up to 100%
Expected yield The first crop of the orchard should be harvested in February to April 2010. From this point, annual yields are expected to increase until the almond trees reach full maturity in their seventh year.
Water supply The first crop of the orchard should be harvested in February to April 2010. From this point, annual yields are expected to increase until the almond trees reach full maturity in their seventh year.
Investment Loan
Two loan providers available with flexible funding options. The Investment Loan options for Macquarie are listed below. For more information on the Investment Loans offered by Momentum, visit the Macquarie Almond Investment website at www.macquarie.com.au/almonds.

Macquarie Bank Limited
 
Loan Term Repayment type Indicative interest rate** Repayment Loan establishment fee
1 year Principal only 0% 12 equal monthly instalments 1.00% of the loan amount^^
5 years Principal and interest 8.80% p.a. Monthly instalments^ Nil
7 years Principal and interest 8.80% p.a. Monthly instalments^ Nil

How to apply

Before you invest in the Macquarie Almond Investment 2007, it is important that you read and understand the terms set out in the PDS. To apply, simply complete the application form attached to the PDS above and send it direct to Macquarie. Remember, as with any investment decision, you should consult your financial, legal and taxation advisers for personalised recommendations and advice.

* Assuming the conditions in the Product Ruling are met.
** This interest rate is indicative only and will be updated periodically on the website www.macquarie.com.au/almonds.
^ The monthly repayment instalments for each drawdown shall be in equal amounts over the term or in such other amounts for each month as Macquarie notifies the investor in writing. The allocation of monthly payments between principal and interest will be as determined by Macquarie and notified to the Investor from time to time.
^^ Your Loan Establishment Fee will be included in your Investment Loan amount.

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