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NTT Mahogany 2006-2008 Project

NTT Mahogany 2006-2008 Project
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $12,546 (ex GST)
Term of Project 16 years
ATO Product Ruling 2007/77
Telephone: 1300 138 827

The NTT Mahogany Project 2006-2008 provides you with an opportunity to carry on the business of commercially growing mahogany trees in the Northern Territory. The timber from the Plantation will produce high value hardwood for use in the furniture and building industries.

As a Grower, you will receive a licence to grow mahogany on a minimum of 2 Woodlots, each Woodlot being 0.25 hectares or approximately .625 acre in size, on which the Planting Co (as a subcontractor to the Responsible Entity) will plant an average of no less than 142 Trees. Your Woodlots will be established within 12 months of your application being accepted.

As a sub-contractor to the Responsible Entity, the Land Co will maintain the Woodlots on your behalf.

Under the terms of the Maintenance Agreement, the Land Co undertakes that there will be an average of at least 142 healthy Trees on each Woodlot at the end of the 13-month period following planting. Should the average not exceed the minimum planting density of 142 healthy Trees, the Land Co will have replacement Trees planted to ensure the minimum planting density.

And the Timber Co, as a sub-contractor to the Responsible Entity, will Harvest the Trees on your behalf and market and sell the Timber. Three thinnings or harvests will be undertaken during the term of the Woodlots. Half the trees will be thinned prior to year 6, a second thinning of 25% will take place at approximately year 11 and the final harvest of the balance will take place around year 16 of the Project. The Grower will receive any proceeds from thinnings or harvests and 50% of any carbon credits. Harvesting, milling, drying and marketing costs will be deducted prior to distribution of income.

What you receive

When you become a Grower, you will receive:
 • a confirmation of Allotment (or of Allocation) which will include details of your Woodlots (or Woodlot numbers); and
 • a statement of Application Fees paid, GST, details and dates of payment to assist in the preparation of your income tax return.

During the Project you will receive:
 • annual reports on the progress of the Plantation; and
 • annual financial reports.

How much does it cost?

The Application Fee for each Woodlot is $6,900 (including GST) payable on Application. You must apply for at least 2 woodlots.

At the time of harvest, Growers will also pay a Harvest Fee (to pay for Harvesting and Milling costs), which will be deducted from the proceeds of the sale of the Timber (to give Net Proceeds of Sale). In addition, Growers will pay a Licence Fee, Maintenance Fee and Marketing Fee together totalling 15% of Net Proceeds of Sale to give Net Harvest Return.

There may be a Last Resort Management Fee, explained on page 26 of the PDS.

In addition, an Incentive Fee of 25% of Net Harvest Return (including GST) once the cumulative Net Harvest Return exceeds $45,000 per Woodlot, will be paid to the Responsible Entity to be passed on to the Land Co and the Timber Co.

Other possible ongoing costs for Growers will be interest if they choose to borrow.

extracted from NTT Mahogany 2006-2008 Project PDS

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

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