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Australian Bight Abalone Project 2009
Following on from their most successful year in
2008, and hot on the heels of their first project
harvest (2005) Australian Bight Abalone offer you a
preview of their 2009 project. There have been a
number of changes that will make it easier to put
the project into a portfolio whilst, retaining the
option to pay or defer ‘Cage Rental Fees’ to be
offset against harvest proceeds:
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Project Structure |
|
Term Of
Project |
7 years |
|
Initial
Cost Per Interest |
$
13,827 (incl GST) |
|
Ongoing Fees – per interest (indexed to
inflation): |
|
Management Fees |
$1,760 pa (incl GST) |
|
Cage Rental |
$1,018 pa (incl GST) |
|
Harvest Fees |
$2,420 (incl GST) - 1st
harvest
$3,097 (incl GST) - 2nd, 3rd & 4th
harvests |
|
Reseeding &
Settling |
$1,898 (incl GST) - after
1st & 2nd harvests |
|
Expected Income |
Four distributions over life of project (7years)
Years 2, 3, 5, 6 & 7 |
|
Tax Deductibility |
94% of initial cost, balance available in year 7.
ATO product ruling applied for |
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Expected IRR |
13.97% to 14.68% (before tax) |
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Investor Finance |
To be advised |
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Research |
2 research reports – Adviser Edge
& AAG (April 2009) |
Consider what Adviser Edge said about the 2008 Project:
“Using a risk adjustment model, Adviser Edge has calculated an indicative pre-tax risk adjusted IRR of 15.06%..........When compared to the forecast returns for all MIS projects researched by Adviser Edge in FY2007, the risk adjusted IRR estimate lies above the third quartile,
showing an exceptional potential return compared to the wider MIS market.”………February 2008.
The project is expected to close by 15 June 2009 unless it reaches its maximum subscription earlier.
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