The Tasmanian Premium Cherries Project (May 2009 Growers)

Significant Features of the Tassie Cherries Project

The Tassie Cherries Project has been established to provide Growers with the opportunity to carry on the business of commercially growing cherries in the Huon Valley region of Tasmania with the cherries being sold into both the domestic and export premium cherry markets. The Term of the Tassie Cherries Project is for 16 years (including the first financial year) but the term is subject to up to a two (2) year extension in accordance with the Constitution.

By acquiring Interests in the Tassie Cherries Project, Investors become Growers in their own right. Growers are granted a licence to grow on the Land owned by the Land Owning Company and then appoint FABAL to manage their individual Orchard Allotments by entering into the Management Agreement.

The Offer

The Offer in this PDS provides Growers with the opportunity to acquire at least one (1) Interest in the Tassie Cherries Project.

Minimum Investment and Method of Payment for Investment

Each Investor must invest a minimum of $24,095 (excl. GST) to obtain one (1) Interest in the Tassie Cherries Project. This payment represents fees for Initial Management Services, Irrigation & Planting Services, Ongoing Management Services and Rent payable by Growers in the Tassie Cherries Project.

The fees payable in respect of the Tassie Cherries Project are further detailed in the PDS under Section 4 - Financial & Taxation Information.

The first payment in the amount of $8,640 (ex GST) is due together with the Application. The balance is due no later than in accordance with the “Grower Fees” table set out above.

Each Investor may elect to fund the cost of the Grower Fees themselves, choose a Terms Loan Payment Option from FABAL or borrow from an independent lending institution.

Grower Fees may be paid by Visa or Mastercard if the Grower chooses. Credit card payments accepted by FABAL will attract a merchant fee equal to the amount incurred by FABAL in processing the payment. As at the date of this PDS the applicable merchant fee is 1.1%.

The minimum investment represents an entitlement to the Grower to approximately 0.10 hectares of the Tassie Cherries Project’s total cherry Orchard. This will equate to approximately 100 cherry Trees per Allotment.

Terms Loan Agreement

Investors wishing to acquire Interests in the Tassie Cherries Project pursuant to a Terms Loan Agreement have a period of 1, 2 or 5 years in which to pay for their Interest in the Tassie Cherries Project - depending on the Terms Loan Payment Option selected.

Investors wishing to apply for a Terms Loan Payment Option should contact the Responsible Entity on 1300 322 251 to obtain a paper copy of the Terms Loan Agreement Information Brochure which contains the Direct Debit Agreement so that repayments may be debited directly from the Applicant’s nominated financial institution account or credit card.

An electronic version of the Terms Loan Agreement Information Brochure also appears at the Responsible Entity’s web site: www.fabal.com.au.

Pursuant to the Terms Loan Agreement, payments are made over either a 1, 2 or 5 year term (dependent upon which Terms Loan Payment Option is selected) commencing on the last business day of July following the acceptance of the Application.

There are 2 payment options that may be selected by Growers (or their Associates): 

Before making any decision to enter into a Terms Loan Agreement with which to acquire an Interest or Interests in the Tassie Cherries Project, Growers (or their Associates) must read this PDS and the Terms Loan Agreement Information Brochure in their entirety.

If, after reading this PDS and the Terms Loan Agreement Information Brochure a Grower (or their Associate) has any questions they should consult their professional adviser about their contents and the appropriateness of entering into a Terms Loan Agreement, taking into account their individual objectives, financial circumstances and needs.

To enter into a Terms Loan Agreement an Applicant must execute the Terms Loan Agreement and Direct Debit Agreement along with the Application Form attached to this PDS.

The Responsible Entity will monitor the level of Applications received pursuant to each Terms Loan Payment Option and is not obliged to accept any Application to acquire an Interest or Interests in the Tassie Cherries Project pursuant to a Terms Loan Agreement.

Total Beverage Australia Pty Ltd (ACN 004 877 605) (“Total Beverage Australia”), a related entity of the Responsible Entity, will provide finance to Investors pursuant to any Terms Loan Agreement. The Terms Loan Agreement is a full recourse loan to the Applicant. Total Beverage Australia will obtain security for the terms loan facility by taking an enforceable charge over the Grower’s Interest(s) in the Tassie Cherries Project. If the Grower is a corporate entity (including in its capacity as trustee of a trust), the Directors of this entity will be required to guarantee the terms loan facility.