Please note: To access all documentation you need to be registered prior to downloading files. Simply REGISTER HERE to receive your username & password.

Not a member yet? - Register NOW


TFS Sandalwood Project 2011

TFS Sandalwood Project 2011
Cash Rebate 4.00%
Closing Date CLOSED
Minimum Investment $12,500 (ex GST)
Application Cost per Unit
(ex GST)
$12,500 (ex GST) per Lot for up to 5 Lots
$12,000 (ex GST) per Lot for 6 or more Lots
Term of Project Approx. 15 years
Research Adviser Edge 4 stars
ATO Product Ruling 2011/9

 
APPLICATIONS CLOSE 30 JUNE 2011

Please fax or scan the application forms and forward prior to placing them in the post.

Fax: (08) 6389 1546
Email: marina@tfsltd.com.au

Once faxed or emailed, please post original applications, to be received no later than 5th July 2011, to:

TFS Sandalwood Project 2011
PO Box 3040 Broadway
Nedlands WA 6009
   
Product Disclosure Statement
Finance Application
This long term finance is in addition to the 12 months interest free loans that are detailed in the PDS.
Investment Calculator
 
   

 
INVESTING WITH TFS

Experienced Managers
The TFS Sandalwood Project 2011 (TFS 2011) (ARSN 150 211 171) is the company’s fifteenth Indian Sandalwood Project under management.

Expert Forester to TFS, Peter Kimber and their Senior Forester Chris Done, are widely renowned as Australia’s foremost Sandalwood experts. Both Peter and Chris previously worked with the WA Department of Conservation and Land Management (CALM) on the original Sandalwood trial plantations in the area. Together with the experienced plantation management team located in Kununurra, your plantation is established and maintained to the highest order.

The TFS parent company, TFS Corporation Ltd, listed on ASX Limited in December 2004 (ASX Code: TFC).

In 2008 TFS acquired leading global WA Sandalwood distiller Mt Romance. This WA based company adds expert knowledge in processing and distillation, as well as a blue-chip client base in the global fragrance industry. TFS is committed to exploring opportunities in an ever-expanding market place with demand for fragrances, religious products and pharmaceuticals forecast to increase.

Dedicated to Sandalwood
TFS first planted Indian Sandalwood in Kununurra in 1999 and has since planted over 3,700 hectares of commercial Indian Sandalwood plantations on behalf of over 3,000 individual growers and companies associated with TFS. By 30 June 2011 a further 1,088 hectares (approximately) of Indian Sandalwood will have been planted on behalf of approximately 350 growers and companies associated with TFS.

TFS is a specialist Indian Sandalwood plantation manager and is committed to the long term development of an Australian grown Indian Sandalwood industry. The majority of their Directors are Growers and shareholders in TFS, confirming a dedication by the company to achieve the best possible Sandalwood growth, yields and returns for its Growers. In addition to the trees owned directly by the Company, TFS has a vested interest in the trees of the growers who elect to defer payment of their annual management fees. In some instances this deferral could accumulate up to 40% of the harvest.

Sustainable Development
TFS is committed to sustainable development to preserve long-term benefits for the community, environment and TFS.

TFS supports local and indigenous communities through the sponsorship of cultural and educational programs and the creation of local employment opportunities.

The unique climate of tropical north Australia provides an ideal location for the growth of Indian Sandalwood. TFS is committed to preserving this unique region and minimising the company’s environmental footprint.

TFS believes that it can be part of a better world, starting with the Kimberley region.

Environmentally Responsible

TFS adopts a proactive approach to environmental management. Locally, the TFS Sandalwood plantations are assisting to lower the water-table and reduce salinity problems across the Ord River Irrigation Area (ORIA). The bio-diverse nature of Sandalwood plantations also makes them an ideal nesting place for native birds.

In 2006 TFS opened the first ever water recycling project in the ORIA. TFS was recognised as a regional leader in environmental management, winning the inaugural 2006 Remote and Rural Water Award from the Western Australian State Government.

The water recycling project has important environmental and economic advantages, helping to take environmentally friendly forestry to the next level.

TFS has obtained accreditation in ISO 14001 (Environment), ISO 9001 (Quality) and AS 4801 (Health & Safety).

On a global scale, TFS is ensuring the longevity of this much sought after species.

INVESTING IN SANDALWOOD

An investment in Indian Sandalwood forestry with TFS offers a stable and tax effective investment in an alternative asset class with the potential for excellent returns.

High Demand for Indian Sandalwood
Sandalwood has been an integral part of Asian culture and religion for thousands of years, and remains a key ingredient in leading fragrances and cosmetics.

The Indian species of Sandalwood (Santalum album) commands the highest price at auction due to its superior oil yields and long-term market acceptance. The current price for Indian Sandalwood logs averages over A$100,000 per tonne.

Depleted Supplies
Due to such high demand for the wood and oil of the Indian Sandalwood tree, and an unbridled black market, supplies are rapidly diminishing.

Experts predict that current production levels of the Indian Sandalwood tree cannot be sustained if illegal harvesting cannot be restricted.

Australia has the only known large-scale commercial plantations of Indian Sandalwood in the world, with TFS being the largest.

Soaring Prices
An increase in the price of Indian Sandalwood of 18% per annum (compounded) has been sustained for the last 18 years.

Experts predict a continuing increase in price of at least 5% per annum due to the ever-increasing supply/demand imbalance of Indian Sandalwood.

Optimal Growing Conditions
The tropical north of Australia displays ideal conditions for the healthy growth of Indian Sandalwood.

The intellectual property built up by TFS over 10 years’ of plantation experience is second to none.

Supporting this is over 20 years’ of government research into Indian Sandalwood silviculture.

2011 PROJECT FEATURES

100% Tax Effective Product Rulings

TFS 2011 has been granted a Product Ruling (
2011/9) from the Australian Taxation Office (ATO). The rulings confirm that all fees paid in relation to TFS 2011 are fully tax deductible in the financial year they are paid.1

Growers that are registered for GST may also claim input tax credits for GST paid in relation to TFS 2011. By becoming a Grower, you are deemed to be in business and therefore entitled to register for GST.

Discount for Additional Lots
TFS 2011 has a minimum investment of one sixth of a hectare (1/6th Ha) for the entry price of $12,500 plus GST, with volume discounts available.

Twelve Months Interest Free
Establishment Fees may be paid over a period of 12 months, exclusive of interest. A deposit of 20% of Establishment Fees will be required upon application.

Ability to Defer Ongoing Fees
Following the initial Establishment Fee, a Grower may elect to defer Annual Fees and Rent via an annual election.

A percentage of Gross Proceeds of Sale will be deducted for each year a Grower elects to defer. This deferral percentage will decrease over the term of TFS 2011 (see Deferral Fees table).

COST AND OPTIONS4


Fees per Sandalwood Lot of 1/6th Hectare

ANNUAL INVESTMENT OPTION
Establishment Fee
Number of Sandalwood Lots applied for by Applicant Fee GST Total
1 – 5 lots $12,500 $1,250 $13,750
6 or more lots $12,000 $1,200 $13,200

Annual Fees
Fee Type Fee GST Total
Annual Fee2 $830 $83 $913
Rent2 $250 $25 $275

ANNUAL DEFERRED INVESTMENT OPTION
Establishment Fee
Number of Sandalwood Lots applied for by Applicant Fee GST Total
1 – 5 lots $12,500 $1,250 $13,750
6 or more lots $12,000 $1,200 $13,200

DEFERRAL FEES

Annual deferral of the Annual Fee and Rent is available on the following basis:
Year of Deferral Percentage of Gross Proceeds of Sale to which the Responsible Entity is Entitled to in respect of that year
Years 1 – 2 3% (plus GST)
Years 3 – 6 2% (plus GST)
Years 7 – 12 1% (plus GST)
Notes:

1
Growers should be aware that Product Ruling 2011/9 is based on the precise arrangements identified in the Rulings. If the arrangement described in the Ruling is materially different for the arrangements actually carried out, the Ruling has no binding effect on the Commissioner and will be withdrawn or modified. Growers are recommended to read the Product Ruling in its entirety and seek their own professional taxation advice concerning the taxation implications to term of investment in TFS 2011. Grower’s who elect to collect their own Sandalwood cannot rely on the ATO Product Ruling in respect of their Sandalwood Lots in the Project.

2
The Annual Fee and Rent increase at a fixed rate of 3% per annum in the year following the Establishment Period. No Annual Fee and Rent will be payable for years 13 and 14.

3
TFS Properties anticipates that the Harvest of the Sandalwood will occur in Year 14 after Establishment.

4
Additional fees and costs may apply. Please refer to Table 1 in the TFS 2011 Product Disclosure Statement for a complete list and explanation of project fee and costs.


The financial assumptions and risks of TFS Sandalwood Project 2011 (TFS 2011) are shown in the Product Disclosure Statement (PDS). Only the PDS contains the offers to subscribe for securities in TFS 2011 and you should consider the PDS in deciding whether to acquire an investment in TFS 2011. You will need to complete the Application Form in or accompanying the PDS. The Responsible Entity for TFS 2011 and the entity making the offers is TFS Properties Ltd. Tropical Forestry Services Ltd and TFS Properties Ltd are both wholly-owned subsidiaries of TFS Corporation Ltd. A reference to TFS in this brochure is a reference to all or one of these entities, depending on the context.


Simply download an Investment Brochure/PDS above. It’s that easy!
return to previous page