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| Rebate Offer |
2.8% (80%) |
| Minimum Initial Investment |
$10,000 |
| Expected Close Date |
Ongoing |
| Description |
The FEA Timberlands Fund is an opportunity to invest in high-quality forestry land leased to FEA Plantations Ltd with the lease obligations on the initial property portfolio guaranteed by FEA. |
| Product Disclosure Statement |  | Download Product Disclosure Statement (PDS) |  | Request Product Disclosure Statement (PDS) |
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The FEA Timberlands Fund is an opportunity to invest in rural property with one of Australia's leading vertically integrated forestry and forest products companies. FEA has total land holdings of almost 92,000 hectares and over two decades of experience in acquiring and managing rural properties. The Fund invests in high-quality forestry land in Tasmania and New South Wales leased to FEA Plantations Limited with the lease obligations on the initial property portfolio guaranteed by FEA.
Investors will receive quarterly distributions. A minimum distribution rate of 8% p.a. (based on a $1.00 unit price) is anticipated for the period from 1 July 2008 to 30 June 2009.
A simple, sound and reliable investment:
- Aims to provide investors with a regular income stream through quarterly distributions. Rental income is CPI linked adjusted annually with a ratchet clause that prevents rental reduction.
- Presents capital growth potential with Australian farming property values showing a steady upward trend over the past few decades.
- The FEA Timberlands Fund is managed by a highly experienced and successful rural property manager with 23 years experience - FEA's own land holdngs have achieved a nominal property value growth rate of 13.43% over the past decade.
- Investments in rural property have a low volatility of returns due to the fixed nature of rental income which is hedged against inflation
- Portfolio diversification into a sector with a low correlation to shares, listed property and fixed interest
- Suitable for self managed super funds (where the mandate of the super fund permits)
Independent research:
- AAG:
- Atchison Consultants: by introducing Australian rural property into a diversified investment portfolio a decrease in volatility of returns would have been achieved without a reduction in return. Read full report below.
Why rural property?
Atchison Consultants found that Australian rural property has delivered stable total returns comparable to major direct property sectors.
The potential for capital growth has been reflected in an upward trend of Australian farming property values over the past few decades, particularly in the past 10 years.
The initial portfolio of eight properties are high quality forestry land leased to Forestry Plantations Limited with the lease obligations guaranteed by Forest Enterprises Australia Limited. The FEA Timberlands Fund's portfolio currently consists of six properties in northern NSW and two in northern Tasmania. It is intended that the Fund will acquire more properties which have key attributes of high rainfall and deep fertile soils suitable for plantation forestry and other high productive value agricultural activities. The Timberlands Fund will only invest in the underlying land with no direct investment in primary production operations. The property portfolio leases are Triple Net leases where all property maintenance, taxes and operating expenses are borne by the tenant.
The FEA Group is an Australian leader in managed forestry and timberland investments. In 2008, the FEA Plantations Project 2008, Option 1 won AAG's MIS of the Year Award. The FEA Timberlands Fund has been independently rated 4 1/4 stars by AAG Research.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 2.8% of the 3.5% upfront commission on investments in the FEA Timberlands Fund in the form of a cheque. 2020 DIRECTINVEST will retain 0.7% to cover the costs of marketing, postage & handling and administration of this fund. No trailing commission is paid on the FEA Plantations Timberlands Fund. |
| Download Product Disclosure Statement (PDS) | | Request Product Disclosure Statement (PDS) | | Investment Summary | | AAG Research Report | | Independent Report: Investing in Rural Property | | Fact Sheet: Why Rural Property? | | FEA Timberlands Fund Update |
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