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Rebate Offer
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8.0% (80%)
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Minimum Initial Investment
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$5,000 (no GST)
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Expected Close Date
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CLOSED
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Description
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Willmott Forests is a quality endorsed, fully integrated forestry company that manages in excess of 53,000 hectares of Radiata pine, Silky Oak, She-oak and African mahogany plantations.
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The Willmott Forests Premium Forestry Blend Project 2010 combines three plantation forestry species: African mahogany, Radiata pine and Silly Oak in a single agribusiness project. Investors can become growers of a unique mix of plantations that are designed to diversify risk through the combination of three different species planted in different regions with different end products and provide multiple income streams.
Willmott Forests will plant, manage and harvest your agribusiness plantations across south eastern Australia, northern New South Wales, southern Queensland and northern Nothern Territory. So that the term of the investment is comparable to most forestry projects available to Australian investors, Radiata Pine will be sold as standing timber in year 15 with a price guarantee from Willmott Forests.
Key Features
- Multiple distributions: different years of income distribution.
- Diversification:
- Species: each species had a different cash flow and characteristics.
- Geographically: products are spread over different plantations on different locations.
- Different end markets for the species.
- Guaranteed sale of Radiata pine: if the Radiata pine is not sold at a price that is at least equal to 90% of independent valuation, the Responsible Entity will either ‘top up’ from its own resources until they equal 90% of the independent valuation or purchase the standing Radiata pine at a price equal to at least 90% of the independent valuation.
- Stocking guarantee and insurance: 13 months guarantee of replacement and re-establishment if more than 15% of the initial seedlings are materially damaged in this period.
Security Features
- Upfront pre-payment of leases on all 2010 Project land for the life of the Project;
- Registration of Leases and/or Forestry Rights;
- Majority of project land for 2010 Project is already secured; and
- A “Switch” feature to facilitate ongoing funding for the Project in the unlikely event that the Responsible Entity became insolvent.
The Australian Taxation Office has issued a Product Ruling PR 2010/4 on this project endorsing the 100% tax deductibility of the application price. The application price is $5,000 and the investment term is approximately 16 years offering multiple periods of income distribution:
| Species |
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End Products |
Year of Income Distribution |
African Mahogany
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A stable and durable hardwood timber resource
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High value appearance timber
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8, 12 and 16
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| Radiata pine |
For softwood sawlogs and pulplogs. The primary use of softwood sawlogs sold in Australia is the production of structural sawn timber used in house construction and this market is dominated by softwood.
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Structural timber, newsprint, pulp |
13 and 15* |
| Silky Oak |
A high value sawn hardwood timber resource |
Veneer, high value decorative timbers |
10 and 15 |
Willmott Forests is the largest developer of softwood plantations in Australia. It is a fully integrated business with downstream processing operations in Bombala that provide timber products for the Australian market. Willmott Forests manages over 47,000 hectares of plantations on behalf of more then 4,600 investors. The total assets of Willmott Forest are about $160 million as at 31 December 2009.
Please note
For finance applications: All Principal & Interest and 12 Month Interest Free Finance Applications must be submitted by 5.30pm Wednesday 30 JUNE 2010.
For cash applications: Cash applications must be submitted by 5.30pm (AEST) Wednesday 30 JUNE 2010; If you have submitted a cash application via fax, email or online application portal, evidence of payment must also be included such as;
- A bank transfer receipt or;
- A copy of the paper cheque (must be dated on or before 30 June 2010).
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 80% of the 10.0% upfront commission on investments in the Willmott Forests Premium Forestry Blend Project 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 by Willmott Forests. |
* Semi-mature Radiata pine will be sold as standing timber in year 15. The usual rotation is 25 years.
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