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Rewards Group Sandalwood Project 2007

See www.ferrierhodgson.com for more information on Rewards Group Voluntary Administration
Rewards Group Sandalwood Project 2007
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $4,545 (ex GST)
Term of Project 20 years
Research AAG (670kb) 4 stars
Adviser Edge (1.12mb) 4 stars
ATO Product Ruling 2007/87

The Rewards Group Sandalwood Project 2007 (Supplementary) offers Growers the opportunity to invest in a Project that will involve the establishment and operation of an intensively managed Western Australian Sandalwood (Santalum spicatum) plantation located within a 200km radius of Perth in the Wheatbelt region of Western Australia.

Growing the right product for the right market at the right time is a hallmark of Rewards Group’s projects. Rewards’ focus is on growing 'high value, low volume' commodities. This is our unique selling proposition and our focus for a profitable outcome for Rewards’ Growers.

Growers in the Rewards Group Sandalwood Project 2007 can expect to receive distributions every five to seven years throughout the life of the Project, through to a final clear fell harvest at approximately year 20.

By selecting Rewards Group to manage your investment in the Sandalwood Project 2007, you will be selecting a farm manager that offers the following significant benefits to participating Growers:
   
Product Disclosure Statement PDS (1.69mb)
Supplementary PDS (1.72mb)
Finance Package (186kb)
Brochure (456kb)
 

WELL RESEARCHED PROJECTS: Each year Rewards continues to receive high ratings from independent research houses, with extensive experience in determining quality agribusiness projects.

COMPETITIVE FINANCE ARRANGEMENTS: By providing attractive finance packages, Rewards Group’s projects complement many wealth creation strategies for participating Growers.

OWNER MANAGERS: The shareholders of Rewards Group actively manage Growers' investments on a day to day basis. Rewards Group’s focus is on returns to Growers - not ASX listed shareholders.

A precious resource in Asia
The rapidly rising prices for Sandalwood, some 18% per annum for more than 10 years, is a function of increasing demand and a dwindling supply.

Growers can capitalise on the opportunity to grow Sandalwood to be sold to lucrative Asian markets. The world Sandalwood marketplace (predominantly India, China, Taiwan, other Asian countries and the Middle East) can rapidly absorb new supplies of at least 8,000 tonnes per annum of Australian Sandalwood.

There are 2 main commercial species of Sandalwood in the world: Australian Sandalwood (Santalum spicatum) and Indian Sandalwood (Santalum album).

Australian Sandalwood has the following uses:
Sandalwood, when ground into a powder, can be processed into incense sticks (or joss sticks). In India alone, some 500 million incense sticks are burnt on a daily basis for health, family, religious and other significant purposes.
Sandalwood oil (distilled from the Sandalwood heartwood) is used in the manufacture of perfumes, soaps, cosmetics, chewing gum and tobacco products.

Exports of native sources of Australian Sandalwood peaked at 14,355 tonnes in 1920. Even though global demand for Sandalwood is strong today, less than 2,000 tonnes are exported from Western Australia on an annual basis. This is principally due to the lack of available Sandalwood.

Rewards Group has invested more than $51 million of Growers capital for the successful establishment of 5,599 hectares of Australian Sandalwood plantations in the Western Australian Wheatbelt. The supply of Australian Sandalwood from these plantations will help meet global demand for Sandalwood.

Rewards’ objective is to increase Sandalwood exports via plantation grown Australian Sandalwood.

The trade in Sandalwood has occurred for over 2,500 years. The use of Sandalwood in India and China has been documented since 500BC and it is still used extensively in both countries today.

As a rule of thumb, the price of Australian Sandalwood is generally one-third of the price of Indian Sandalwood, mainly due to it having lower oil content.

The Project

The Project will operate for approximately 20 years and will be progressively harvested between ages 5 and 18. The Project aims to produce high quality Sandalwood. Sandalwood is native to Western Australia and has been exported to Asian markets for over 150 years. It is an aromatic wood highly prized in Asia for its use in joss sticks (incense) and as a source of essential oils. Sandalwood oil is used as a base in many cosmetics and perfumes.

The Rewards Group Sandalwood Project 2007 (Supplementary) is the latest in an ongoing annual release of Sandalwood plantation forestry projects that have been offered by Rewards Projects Ltd.

Project Details

The PDS offers 2,000 Woodlots of 0.5 hectares each at an issue price of $5,000 (inclusive of GST) per Woodlot. 

The Project is supported by Australian Taxation Office Product Ruling 2007/87.
Finance options with up to 100% gearing available.
No ongoing costs will be charged to Growers on an annual basis, other than a very small amount annually for insurance against fire and other insurable events such as windstorm and hail.
Independent agribusiness research reports will be published shortly.
Growers can obtain immediate taxation benefits and fees will be tax deductible in the financial year in which they are incurred.

The Industry
The world Sandalwood market struggles to meet rising demand with available supply and as such the price of this precious timber has continued to rise dramatically.

With increased demand for Sandalwood in Asia, declining global supplies, Government incentives for forestry projects in Australia and environmental benefits, the development of Sandalwood plantations in Western Australia makes sense.

DISCLAIMER: Rewards Projects Ltd has issued a Product Disclosure Statement dated 14 December 2006 and Supplementary PDS dated 29 October 2007 (SPDS) for the Rewards Group Sandalwood Project 2007 (ARSN 121 784 325) which details the terms of the offer. Anyone wishing to invest should consider the contents of the SPDS and complete the application form in the SPDS. The information in this brochure does not constitute personal investment advice and has been prepared without taking into consideration any particular client's objectives, financial situation or needs. Because of this, before acting on any information in this brochure, you should consider whether the advice is appropriate for your objectives, financial situation and needs and consult an independent professional if necessary. You should obtain the PDS or other offer document relating to the Project and consider this before making any decision about whether to invest. The information contained in this brochure is provided in good faith and believed by Rewards Projects Ltd to be accurate at the time of completion. However, it makes no representation or warranty as to the accuracy, reliability or completeness of this information. Except to the extent that statutory liability cannot be excluded. Rewards Projects Ltd, its directors, employees, associates, related entities, agents, advisers and consultants have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from, or for any omissions from, the information provided in this brochure. Nor do they guarantee the success or performance of any Project, the payment of any return from an investment in any Project or the taxation consequences of any investment in a Project.


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

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