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Timbercorp Olive 2008 Project

Timbercorp Olive 2008 Project
Cash Rebate 8.25%
Closing Date CLOSED
Minimum Investment $10,364 (ex GST)
Term of Project 23 years, plus 2 year extension if over the term of the Project fails to exceed 9.5% IRR
Research AAG 4 stars
Adviser Edge 4 stars
Lonsec Recommended
ATO Product Ruling 2007/105
 
Telephone: (03) 8615 1200
Fax: (03) 9670 4504

Since 1992, Timbercorp has raised more than $1.7 billion in funds invested into agribusiness projects by more than 18,000 investors from around Australia.

Timbercorp currently manages:

more than 96,600 hectares of eucalypt plantations;
6,622 hectares of olive groves, including one of the world’s largest olive groves on a single site;
11,862 hectares of almond orchards, the largest single managed almond orchard estate in Australia;
1,345 hectares of citrus orchards;
412 hectares of table grape vineyards;
816 hectares of mangoes;
1,207 hectares of avocados; and
8.2 hectares of glasshouse tomatoes.

Timbercorp is an ASX/S&P 200 listed company with consolidated net assets in excess of $519.8 million at 30 September 2007. The Timbercorp group of companies has been established for 15 years and they have built a strong financially sound business to ensure that they manage your investments throughout the project term. They are a market leader in agribusiness investment with a proven track record.


About the project
   
Product Disclosure Statement PDS
Loan Explanation Terms
Ongoing Loan Explanation Terms
Loan Application Form
Ongoing Loan Application Form
 
A commercial investment in Australian extra virgin olive oil with established end markets
100% tax deductible supported by ATO Product Ruling PR2007/105
Build wealth through attractive after tax returns over the 23 year term
2 year project extension if after tax IRR does not exceed 9.5% p.a. by the end of the term
Flexible finance terms
Ability to participate as a joint venture grower with another entity, such as your self managed super fund
Grove established on premium olive growing land in one of Australia’s premiere olive growing regions
Grove managed by Boundary Bend Estate – Australia’s leading olive management and processing company.

Agribusiness is a specialised activity outside of the traditional investment classes. Well managed, and undertaken on a large scale, it can provide attractive returns and form a valuable part of a diversified portfolio.

Timbercorp is one of Australia’s leading agribusiness investment managers. They source, fund and manage high quality, large scale agribusiness projects for investors looking for attractive tax advantaged returns.

The 2008 Timbercorp Olive Project is an opportunity to participate in horticulture and establish a future long-term income stream with immediate tax benefits supplying quality extra virgin olive oil for domestic and export sale to established markets.

Timbercorp’s olive oil has garnered numerous awards in recognition of its outstanding quality and is testified by it having received awards at the prestigious Gold Orciolo event, one of Italy’s most important olive oil trade shows, for 3 years in succession. It was also ‘Best Oil in Show’ at the 2005 Sydney Royal Olive Oil Competition, ‘Champion Varietal Oil’ at the 2007 Sydney Royal Olive Oil Competition and received over 30 medals at various shows in 2006 and 2007, including 6 gold medals and 5 ‘Best-In-Class’ from 35 entries in Australian extra virgin olive oil competitions.

How does the project work?

You will become an olive grower in a large-scale olive grove that is expected to enter commercial production from 2009 by: 

entering into a licence to use two or more identifiable allotments of land of approximately hectare each, called Grovelots;
engaging Timbercorp to harvest and procure the processing of the olives grown on your Grovelots, primarily into premium extra virgin olive oil; and
appointing Timbercorp to market the olive oil processed from your Grovelots.

What fees are payable per Grovelot?

Application Moneys

$5,700

31 Oct 2008
31 Oct 2009

$1,650 (rent and management fee)
$1,650 (rent and management fee)

Ongoing annual fees

Licence Fee:
$600 in Oct 2010 and Oct 2011; $1,147.48 in Oct 2012; and then $1,177.31 in Oct 2013 and each subsequent year, indexed for inflation in and from Oct 2014.

Farm Operating Costs:
Commencing Oct 2010 and each subsequent year

Management fees deducted from crop proceeds

Deferred management fee of 1.65% of Net Proceeds for the 2009 financial year and 3.3% for 2010-2031 or until 2034 if the Project is extended.

* Costs include GST

Timbercorp's Project Investment Criteria

In choosing crops for projects, Timbercorp draws on almost two decades of experience in establishing some of Australia’s largest and most successful agribusiness projects. That experience has defined key selection attributes, essential when striving to deliver sound commercial returns. These attributes are all clearly present in the 2008 Timbercorp Olive Project.

CRITERIA

EXTRA VIRGIN OLIVE OIL

1 Secure End Markets

Established sales channels in domestic and/or export markets with growing demand and linkages with strategic marketing partners.

2 Strong Industry Fundamentals

Detailed analysis of global market fundamentals indicating long term strength in demand and prices.

Australian olive oil consumption experienced more than 600% growth over the past 20 years. Australian production is 1% of world production and less than a third of domestic consumption. Total value of world trade in olive oil and other olive products almost US $7 billion.

3 Project Management

Operations managed by industry specialists with a strong performance history.

Boundary Bend Limited (BBL), Timbercorp’s 18.7% owned strategic partner, is a fully integrated producer and marketer of the highest volumes of olive oil in Australia, with 2.5 million trees currently under management.

BBL has consistently produced yields that are 25% to 35% higher than the average achieved by some of the most modern, irrigated olive groves around the world. BBL won Australian Agribusiness Exporter of the Year in 2007.

4 Competitive Advantage

Scope to apply Timbercorp’s business model of large–scale projects in quality produce using enhanced technologies and integrated supply chains.

Large volumes of premium grade extra virgin olive oil produced through world’s best practice.

The quality of the olive oil produced by BBL is testified by it having won multiple awards including Distinction in the past three years at the ‘Gold Orciolo’ show, one of the most prestigious olive oil trade events in Italy.

5 Location and Agronomics

Quality and quantity of suitable land with the right climate, soil, water and transport infrastructure.

Boundary Bend (Vic)

Boundary Bend, in northern Victoria, has atmospheric conditions that are highly suitable to olive production and mirror conditions in traditional olive production areas in southern Europe.

Factors Affecting Project Returns

The Project is a long-term commercial horticultural project and, like any agricultural venture, involves risks. You should carefully consider the risks associated with the Project, detailed in the PDS, and whether it is a suitable venture for you, before making an application to participate in the Project. Neither Timbercorp Securities nor any other person involved in the Project guarantees a return or any particular return from investing in the Project. A discussion of factors affecting returns is set out in section 8 of the PDS.

WARNING
This document is a summary of the Project only and you must read the entire PDS in full in order to be fully informed about the Project.

Neither this summary nor the PDS takes into account your investment objectives, financial situation or particular needs. You should consult your financial adviser before you decide whether the Project is an appropriate investment for you.

Product Ruling PR 2007/105 is only a ruling on the application of taxation law to the specific arrangements described in the Ruling as at the date the Ruling was issued and is in no way a guarantee or endorsement of the reasonableness or viability of the Project. Product Rulings are issued subject to conditions and you should read the PDS and Product Ruling PR 2007/105 for details of the conditions that apply.

No person or corporation associated with Timbercorp Securities Limited (AFSL 235653) or Timbercorp Limited guarantees, warrants or underwrites the performance of the 2008 Timbercorp Olive Project or any particular return.



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

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