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Rewards Group Teak Project 2008

See www.ferrierhodgson.com for more information on Rewards Group Voluntary Administration
Rewards Group Teak Project 2008
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $6,000 (ex GST)
Term of Project 20 years
Research AAG (648kb) 4 stars
Lonsec (745kb) Recommended
ATO Product Ruling 2008/43

Project Details
 
Number of Woodlots on offer - 4,000
Size of Grove - 0.2 hectares
No ongoing costs.  An equal amount of 22% (inc GST) of each Grower's share of net sale proceeds will be deducted from each harvest to cover licence fees and ongoing maintenance fees.
Annual insurance fees will apply if a finance option is taken.
Trees will be harvested on a progressive basis between the ages of 6 and 18 years.
Finance options with 100% gearing available.
Investing in the Rewards Group Teak Project 2008 will have significant environmental benefits and will provide a plantation source of teak which is expected to reduce harvesting pressure on depleting native teak forests.
 
The Project aims to produce teak poles and sawlogs. Teak is a premium quality tropical hardwood renowned for its strength, durability and weather resistant qualities. The market value of teak is greater than that of most other plantation timbers.
The trade in teak logs and timber has occurred for centuries. The majority of teak produced is either consumed internally in the country of origin or used in the manufacture of export products for the Western market.
The Project will ease pressure on native teak supplies in Asia, help reduce soil degradation on farmland in north Queensland and create a sink for greenhouse gases.
The term of the Project is expected to be approximately 20 years, with the first harvest occurring when the trees are at least 6 years old.
In 2008, Rewards Group exported its first shipment of teak poles to India.
Significant tax deductions for expenditure incurred by Growers, will be supported by an Australian Taxation Office Product Ruling.
   
Product Disclosure Statement PDS (3.70mb)
Finance Package
 

What is Teak?

Teak (Tectona grandis) is commonly considered by ship builders and outdoor furniture manufacturers to be the world’s most versatile, durable and valuable hardwood. Teak is a dense, coarse, close-grained hardwood. It contains high levels of resinous oils that allow it to be naturally resistant to moisture, insects and pervious to the drying effects of weather.

Teak also contains silica, a sand-like compound that permits resistance to fungal decay, water rotting, warping, shrinking, swelling and many damaging chemicals. It will not rust or corrode metals it comes in contact with and it can withstand the elements of all seasons, with its beauty increasing with age.

No other wood compares to teak regarding its durability, elegance, stability and low maintenance, making it the ultimate choice for furniture construction and ship building worldwide.

Prices On the UP AND UP!

Based on the past 30 years of teak price increases, the value of teak trees should grow substantially every year regardless of the instability of global financial markets.

The growing demand for teak timber coupled with limited geographical growing areas and shrinking international supply suggests that increases in teak prices should continue to climb at a steady rate, as it has for the past 30 years.



Limited Supply matched with High Demand: A POSITIVE RESULT

The natural forests of teak around the world are not be able to meet current demand and will not be able to meet future demand for teak.

It is widely believed that the supply of teak into India from West Africa (from which 60% of India’s current imports originate) will be completely at an end in 5 years time. That is to say, the supply from West Africa of 1,500,000m3 per annum of teak will cease in 5 years time.

Teak prices in the past 30 years have risen at more than 7.5% per annum compounded.

Illegal felling of teak in West Africa and Indonesia and other countries is on the rise, a clear indication of rapidly rising prices and rapidly falling supply. In 1982, the domestic Indian market consumed more than 7,500,000m3 of teak per annum (3 times more than it does today). Due to chronic over harvesting around the world, illegal felling and only a small sustainable teak plantation industry, the Indian domestic consumption figure has fallen to 2,500,000m3 per annum.

The world teak marketplace can rapidly and easily absorb a new supply of at least 500,000m3 per annum of Australian plantation teak. There is a stark and obvious need for Australian plantation grown teak to enter the world teak market place.

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

By selecting Rewards Group to manage your investment in the Teak Project 2008, you will be selecting a farm manager that offers the following significant benefits to participating Growers:

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’ 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' focus is on returns to Growers - not ASX listed shareholders.

Rewards Group was founded with the vision of developing quality agribusiness projects using first class technical expertise.

The agribusiness industry represents a legitimate and appropriate way to generate investment in commercial scale primary production projects.

Rewards Projects Ltd meets the need within this industry for investment alternatives, backed by quality management.

Since 1999, Rewards has successfully raised in excess of $220 million for the following projects to year end 2007.
 
Brushwood - 390 hectares
Sandalwood – 7,104 hectares
Teak – 3,354 hectares
Tropical Fruits - 1,047 hectares
Viticulture - 95 hectares
Berries - 190 hectares

What does a Woodlot Cost?
Becoming a Grower in the Rewards Group Teak Project 2008 can be easy by using either your own funds or borrowing from an appropriate lender.

An upfront fee of $6,600 (inclusive of GST) is payable per Woodlot on application. Growers who are registered for GST may be able to claim the $600 GST when a completed Business Activity Statement (BAS) is lodged. Growers are recommended to register and claim the GST.

No ongoing costs will be charged to Growers on an annual basis, other than a small amount annually for insurance against fire and other insurable events such as windstorm and hail.

A maintenance fee of 8.8% (inclusive of GST) of the Grower’s share of the net sale proceeds will be deducted and received by the Responsible Entity from the sale of timber from each harvest for maintaining the Grower’s Woodlots.

A fee of 13.2% (inclusive of GST) of the Grower’s share of the net sale proceeds will be deducted and received by Rewards from the sale of timber from each harvest for the licence of Grower’s Woodlots.

The teak trees will be progressively harvested between the ages of 6 and 18, with the precise timing, number of trees per harvest and number of harvests to be determined by Rewards Projects Ltd at the relevant time.

DISCLAIMER
Rewards Projects Ltd has issued a Product Disclosure Statement dated 24 April 2008 (PDS) for the Rewards Group Teak Project 2008 (ARSN 130 210 552) which, details the terms of the offer. Anyone wishing to invest should consider the contents of the PDS and complete the application form in the PDS.

The information above 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 read the PDS or other offer document relating to the Project and consider this before making any decision about whether to invest.

The information contained above 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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