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Rebate Offer
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8.0% (80%)
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Minimum Initial Investment
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$10,208 (incl GST)
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Expected Close Date
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CLOSED
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Description
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The Macquarie Forestry Investment project innovative structure designed to maximise returns and to reduce the downside risk of investing in agriculture.
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The Macquarie Forestry Investment 2010 provides you with an opportunity to invest in Australian plantation forestry. Investors will undertake a business in growing varieties of Eucalyptus Trees which are classifies as 'hardwood'. Investors are also able to invest in the Macquarie Timber Land Trust. The 2010 projtect includes security features to help protect investors from some of the risks of your investment.
Key benefits
- Diversification: agribusiness has historically exhibited low to negative correlation to traditional asset classes such as cash, fixed interest, property or shares and as such can help to provide diversification in your investment portfolio.
- Tax-effective: 100% tax deductible for your investment in the trees supported by ATO Product Ruling.
- Pre-sale of your trees: you have the comfort of knowing that before your trees have even been planted, agreements have been signed for the purchase of your trees, once harvested, by Midway(one of Australia's largest exporters of pulpwood).
Investing in the tree project
Interests in the tree project are $2,552 (incl GST) with a minimum application of 4 interests*.
How the investment works:
- For each Interest you will own a specific group of trees planted on 1/4 hectare of land with expert support at all stages of the process.
- Once fully grown, after a period of approximately 10 years (investment term is approximately 11.5 years), the trees will be harvested and processed and the hardwood woodchips sold on your behalf.
Investing in the Land Trust
The Macquarie Forestry Investment 2010 also offers you the opportunity to invest in the land on which your trees are grown. By investing in the land you can gain exposure to potentially appreciating rural land prices as well as potentially providing an additional source of income at maturity.
The ability to invest in land as well as trees allows you to manage your downside risk by having the potential for an additional source of income at maturity and exposure to the relative stability of an investment in land.
How the Land Trust works:
- You can invest minimum 1500 units (approximately 1 hectare of plantation land) at $1 per unit*. You have the potential to receive annual cash distributions from your investment in the Land Trust.1
- You will receive any net proceeds2 from the sale of your land once the trees have been harvested.
You can choose to invest in trees or land or both.
Protection Features
Macquarie has incorporated protection features in the 2010 Forestry Investment that aim to manage some of the risks of investing. These features include security over separate deposit accounts that will be established for the benefit of investors.
| Overview of deposit accounts |
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The 2010 Forestry Accounts |
Land Rental Security Account
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| WHO is the feature for? |
Tree Project Investors |
Land Trust Investors
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| WHAT is the feature? |
Funds are to be deposited by MAAML and Macquarie Forestry Services into separate accounts held by them with MBL that are charged in favour of the Tree Projtect. |
Funds are deposited into an account held by MAAML with MBL which is charged in favour of the Land Trust. |
| WHY is the feature in place? |
To provide funds for the Tree Project to meet tree establishment costs, and annual forestry and maintenance expenses until harvest commences. |
To provide funds to pay the annual rental payments in years 2 to Maturity (inclusive) owed to the Land Trust under the Lease.
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| HOW does the feature work? |
If the security charge is enforced funds then remaining in the account (if any) can be used to meet ongoing costs and expenses. |
If the security charge is enforced funds remaining in the account (if any) can be used to make annual rental payments. |
Finance options
| Loan term |
Repayment type |
Indicative interest rate |
Establishment fee |
| 1 year |
Principal only |
Interest free |
1.00% of loan amount |
| 5 years |
Principal and interest |
10.40% pa |
Nil |
| 7 years |
Principal and interest |
10.90% pa |
Nil |
Macquarie Agribusiness
Macquarie Agribusiness is a subsidiary of the Macquarie Group, providing you with the stability and experience of investing with one of Australia’s largest financial institutions. Macquarie Agribusiness has operated forestry investments for retail investors annually since 2003 and has established and and currently has more than 18,000 hectares of forestry plantations under management. With Macquarie Agribusiness, you can feel confident that you will be investing with an experienced and stable manager who provides a long term commitment to managing your investment.
The Macquarie Forestry Investment 2010 has been independently rated by research houses AAG (Australian Agribusiness Group) and Adviser Edge.
Important information
Macquarie Alternative Assets Management Limited (MAAML) and Macquarie Financial Products Management Limited (MFPML) have issued a Supplementary PDS (SPDS) date 15 June 2010 for the Macquarie Forestry Investment 2010. The SPDS further clarifies disclosure made in the Product Disclosure Statement dated 30 April 2010 (PDS). The SPDS must be read together with the PDS.
An application in the Macquarie Forestry Investment 2010 must be made on an updated application contained in the Product Disclosure Statement titled SPDS version or with a signed acknowledgement form enclosed within the PDS. Existing applications please download a copy of the SPDS below and return the acknowledgement.
Please note all applications need to be received by Macquarie by 12 noon EST, Wednesday 30 June 2010. Investment loan applications need to be received by 12 noon EST, Tuesday 29 June 2010.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 80% of the 10.0% upfront commission on investments in the Macquarie Forestry Investment 2010 in the form of a cheque. 2020 DIRECTINVEST will retain 2.0% to cover the costs of marketing, postage & handling and administration of this fund. No trailing commission is paid on the Macquarie Forestry Investment 2010. |
*The minimum investment is 4 Interests in the Tree Project or 1,500 Units in the Land Trust.
1 Depending on your marginal tax rate and the level of any distribution that is re-invested back into the Land Trust.
2 When the land is sold, proceeds of the sale will firstly be used to extinguish any residual balance outstanding on the Land Trust Loan, with the remaining net proceeds on sale of the land to be distributed to investors.
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