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2008 Release: Stage 2
of 2007 AIL Almond Orchard Project |
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Cash Rebate |
8.25% |
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Closing Date |
CLOSED |
| Minimum
Investment |
$6,636 (ex
GST) |
| Term of Project |
17 years -
Grower Project
29 years - Asset Trust |
|
Research |
AAG |
 |
|
ATO Product Ruling |
2008/11 |
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Telephone: |
(03)
9629
2777 |
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Fax: |
(03)
9629 1944 |
The Almond Orchard Project
offers an opportunity for you to:
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generate wealth
flowing from the strong world wide demand for
almonds; |
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become involved in
Australia’s expanding and profitable almond
industry; |
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benefit from the
expertise of the Executive Directors who have
had significant experience in establishing and
managing successful almond orchard projects,
including our 2004, 2005, 2006 and 2007
Projects; |
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participate as a
2008 Grower in the AIL Almond Grower Project –
Swan Hill (the “Grower Project”) for
approximately 17 years, which is expected to
generate income from Project Year 3 when the
first almond crop is expected to be harvested; |
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as a 2008 Grower,
receive tax deductions for growing and
management, irrigation and sublease fees for the
first three years of the Grower Project as
described in PR 2008/11. The Product Ruling also
confirms the deductibility of ongoing fees for
the Grower Project provided that there is no
material change to the Project arrangements (as
described in the Product Ruling) or relevant
taxation laws at the time the fees are incurred; |
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as a 2008 Grower,
receive income from the net proceeds from the
sale of almonds from the Orchard in the years of
profitable almond production; |
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participate as a
2008 Orchard Asset Owner in the AIL Almond Asset
Trust - 2007 (the “Asset Trust”), which is to
acquire the Land, Almond Trees and Water Rights.
These assets will be used in the Grower Project
on the terms of the Allotment Sublease
Agreement; |
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as a 2008 Orchard
Asset Owner, receive distributions from the
Asset Trust, generated from the net proceeds
from the sale of Almonds from the Orchard in
years of profitable almond production after the
expiry of the Grower Project. |
The Project is a long-term
investment and will be subject to the risks
generally associated with commercial almond
production, processing and marketing. You should
consider the risks outlined in the Significant
Risks section of this PDS before deciding to
participate in the Project.
THE OFFER
Under this Product Disclosure
Statement AIL offers:
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3,000 Grower
Allotments in the Grower Project; and |
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3,000 Units in the
Asset Trust. |
AIL may in its discretion, accept
oversubscriptions.
Applications will be accepted from the date of
this PDS until 15 June 2008. Grower Allotments
and Units will be issued no later than 15 June
2008.
Investors that subscribe for Grower Allotments
or Units under this PDS will be treated as being
in different Project Years to investors that
subscribed for Grower Allotments or Units on or
before 15 June 2007 and will be treated as a
different class of Growers for the purpose of
calculating fees and when pooling almonds for
harvest and sale and will hold a different class
of Units in the Asset Trust. In this PDS,
investors that subscribed for Grower Allotments
or Units on or before 15 June 2007 are referred
to as “2007 Growers” and “2007 Orchard Asset
Owners” respectively, and collectively as “2007
Investors”. Investors that subscribe for Grower
Allotments or Units under this PDS during the
period from the date of this PDS to 15 June 2008
are referred to as “2008 Growers” and “2008
Orchard Asset Owners” respectively, and
collectively as “2008 Investors”.
Applications must be received for a minimum of
one Grower Allotment and one Unit. AIL reserves
the right to refuse any application.
Unless otherwise agreed with any particular
Grower or financial intermediary, Allotments
will be allocated and issued in the order of
receipt of completed applications. Allotments
will be allocated progressively across the
Orchard.
THE PROJECT
Investors are offered the opportunity to carry
on the business of growing almonds as a Grower
and to become an Orchard Asset Owner in an
almond orchard development located near Swan
Hill, Victoria, near our 2004, 2005 and 2006
Projects and existing Grower Allotments in the
Project. The offer is in respect of two
registered managed investment schemes - the AIL
Almond Grower Project –Swan Hill (the “Grower
Project”) and the separate AIL Almond Asset
Trust -2007 (the “Asset Trust”), which together
are called the 2007 AIL Almond Orchard Project
(the “Project”). You will participate in the
Grower Project as a 2008 Grower by holding
Grower Allotments and in the Asset Trust as a
2008 Orchard Asset Owner by holding Units. The
structure of the Project is illustrated in the
following diagram:
1 |
Pursuant to the Constitution of the
Asset Trust, AIL as Responsible Entity
of the Asset Trust is to acquire the
Land,
Almond Trees and Water Rights (that is,
the Project Assets). Those Project
Assets will be held on trust for Orchard
Asset Owners. The Custodian will hold
legal title to the assets of the Asset
Trust. |
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2 |
AIL, as Responsible
Entity of the Asset Trust, grants the
Grower Project the right to use the
Project Assets under a
Head Lease. |
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3 |
AIL, as Responsible
Entity of the Grower Project, subleases
0.125 plantable hectare of Land (an
"Allotment") or multiples
thereof and grants the right to use the
Project Assets to each Grower, on the
terms of an Allotment Sublease
Agreement. |
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4 |
Each Grower appoints AIL
to manage their Allotment on the terms
of an Allotment Management Agreement.
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5 |
The Constitution of the Grower Project
governs the overall Grower Project.
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6 |
AIL, as Responsible
Entity, will enter into various
contracts in relation to the Asset Trust
and the Grower Project. |
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7 |
AIL has appointed
Sandhurst Trustees Limited as custodian
of the Asset Trust and the Grower
Project. (Where appropriate,
and with AIL’s prior approval, Sandhurst
Trustees Limited may appoint a
sub-custodian to hold specific assets).
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Key Benefits of the Grower Project
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Grower Application Fee is 100% tax deductible (PR 2008/11) |
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Tax deductions for ongoing Growing, Management and Lease fees |
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You Own the Irrigation Infrastructure |
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Almond sales proceeds until Project Year 17 |
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Attractive Finance Options for Growers |
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Key Benefits of the Asset Trust
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Subscription price only $1 per Unit |
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Units can be held by a SMSF or other tax effective vehicle |
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Ownership of Land, Trees and Water Rights (not just rent them) |
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Opportunity for capital gain on orchard assets |
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Annual Trust distributions from Project Year 1 |
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Almond sales proceeds during Project Years 18-29 |
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Highly Experienced Management Team
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AIL already has more than 2,500 acres under management |
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Graham Johns, our Orchard Manager, is regarded as Australia’s top
almond specialist |
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Almondco, our Marketing & Processing Agent, has an excellent reputation
both domestically and internationally |
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Expanding and Dynamic Industry
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Strong demand for almonds with world consumption growing |
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Rising demand from India and other Asian countries as income levels
rise |
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Increasing recognition of health benefits (weight management & cholesterol) |
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Highly versatile product that can be used as a major ingredient in
many breakfast cereals, baked goods, snack foods and confectionary |
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Horticultural techniques are proven, almonds are not a speculative crop |
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Almond trees are resilient |
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Australian growers have worldwide respect for producing high quality
product
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Counter seasonality to northern hemisphere growers means that we have
fresh almonds for sale when the Californian crop is out of season |
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Simply download an Investment
Brochure/PDS above. It’s that easy!
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