OVERVIEW
The 2007 Macgrove Project offers a long-term and tax effective investment opportunity for investors. The project involves investors subleasing one or more identifiable allotments of land (approximately 4,000 sq metres), called Macgroves, for an expected 21-year term as part of a commercial macadamia nut orchard. Each Macgrove will include 125 macadamia trees and associated infrastructure and water entitlements.
Maccacorp Ltd is the Responsible Entity, Manager and Sublessor of the Project and is the issuer of the PDS.
Maccacorp Ltd has engaged Maccmanagement Pty Ltd (Project Manager) to manage the Project, thereby being responsible for cultivating and managing the macadamia trees on the investors’ behalf and for procuring services for harvesting the macadamia nut-in-shell. The Project Manager will also be responsible for the processing and sale of the entire macadamia nut crop produced from the Orchard for the duration of the Project. The Manager has arranged for the nut-in-shell to be sold to Macadamia Processing Company Limited ACN 002 607 972 (MPC) for the duration of the project at prices and on terms which are no less favourable than arms length terms.
MPC is the largest purchaser and processor of the Australian macadamia crop and it is the largest wholesaler of bulk macadamia kernel in the world and has established markets in Australia, the United States, Japan, Germany and other countries worldwide.
THE LAND
The 2007 Macgrove Project will be undertaken on land which has been acquired by Maccland Pty Limited (Land Owner) and is situated at 92 Kenzlers Road, Sharon, via Bundaberg, Queensland and being Lots 1
& 2 on PR110202, Lots 3 & 4 on RP866764 and Lot 1 on CPRL5669 (Land). The Bundaberg region is a prime horticultural area with a history of improving yields of high quality primary produce.
MACADAMIA INDUSTRY
The macadamia industry is one of Australia’s largest horticultural industries. World production has grown to almost 100,000 tonnes of nut-in-shell resulting in 25,000 tonnes of raw kernel. Australia leads the way with over 40%, having replaced Hawaii as the leading producer of macadamia nuts. The Australian industry accounts for over 4 million trees covering an area of 15,000 hectares with 60% mature trees, with another 20% in early-bearing stages. The majority of plantings are in Northern New South Wales and South Eastern Queensland which accounts for some 65% of Australian production.
The directors of Maccacorp Ltd have leading industry experience in the cultivation and management of macadamia orchards. The Company’s Chairman, Barry Edmonds has extensive experience with over thirty years in Horticultural and Agricultural industries including the growing of avocados, pineapples, sugar cane and macadamia nuts in Beerwah and Bundaberg, Queensland and Eureka and Caniaba, New South Wales. Don Ross has established successful macadamia orchards in the Alstonville and Nashua regions in northern New South Wales over the last 18 years. Director Chris Lomax is currently a Responsible Officer and Compliance Officer of Lismore Management Corporation Limited and was a Member of the Compliance Committee of Coffee Management Australia Limited as responsible entity for “The Northern Rivers Coffee Project No 1 and No 2”.
KEY BENEFITS
Tax Effectiveness
Your project costs will be 100% tax deductible for the financial year to which they relate if you participate in the Project on or before 15 June 2008 (subject to any reduction on account of GST). This has been confirmed by the Australian Taxation Office (ATO) through the issue of a Product Ruling PR 2007/74
for the Project. The Project must be operated in
accordance with the Product Ruling for deductions to
be allowed. Copies of the Product Ruling are
available above.
Interest incurred on borrowings from Maccfinance to finance a Grower’s investment in the Project will be deductible in the financial year in which interest is incurred. As a Grower, you are also entitled to claim a write-off for the costs associated with the establishment of the macadamia Trees on your Macgroves at the rate of 13% per annum, commencing from the year of first commercial production. This is expected to be the financial year ending 30 June 2011.
Nut-in-shell Sale Proceeds
Maccacorp will remit excess proceeds to you periodically after deducting the annual fees and costs described in detail in the PDS. The macadamia nut-in-shell is expected to be harvested throughout the year from the fourth year after establishment. It is expected that the orchard will yield its first commercial crop in 2011, and will reach full maturity in the eleventh year after establishment.
There are a number of variables that may impact the calculation of returns to Growers in this Project that are listed in detail in the PDS. Given the Project’s agricultural and long-term nature, many of these variables are outside of
Maccacorp's control, which make it impossible to determine future cash flows or returns with certainty. As a result,
the directors of Maccacorp have elected not to provide forecast returns for the Project.
Information is provided in the PDS which allows you to make your own assessment of the benefits of participating in the Project. However, neither the PDS nor this website takes account of your objectives, financial situation or needs. Accordingly,
Maccacorp recommend you seek your own professional advice when considering possible Project returns and to assist you in determining whether participation in the Project suits your objectives, financial situation and needs.
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Summary of the Offer |
|
Offer
Period |
Late growers option is open now and closes
15th June 2008 unless the
Manager’s directors determine to close the
Offer Period earlier. |
|
Minimum Application |
You must apply
for at least one Macgrove. |
|
What
is a Macgrove? |
Each Macgrove
comprises an identifiable area of the
Orchard of approximately 4,000sq metres. |
|
Minimum Subscription, and Allocation |
There is no
minimum subscription as the projected
proceeded 15 June 2007 and what we are now
offering is an extension of that project to
late growers.
Maccacorp are offering 350 Macgroves
(Totalling 140 hectares) for
allocation.
Macgroves will be allocated in order of
receipt of completed applications, unless
agreed otherwise with any particular
investor or financial intermediary and
subject to our absolute discretion to refuse
an application or to allocate less Macgroves
than the number applied for. |
Finance
There are currently 2 ways to
apply for finance:
1. Applying with Commonwealth Bank, or
2. Applying with United Pacific Finance.
1. Commonwealth
Bank Package
The Commonwealth Bank is willing to provide
finance (subject to approval) for investors.
Their terms are:
|
3 year P&I |
|
5 year P&I |
|
1 year Interest only + 4
year P&I |
The interest rate applicable
will be determined by the Commonwealth Bank based on an
individual basis.
2. United Pacific
Finance Package
United Pacific Finance is also willing to provide
finance (subject to approval) for investors.
Their terms are:
|
|
10 years – 3 years
interest only followed by
7 years principal and interest |
|
|
7 years – 2 years interest
only followed by
5 years principal and interest |
The Indicative UPF Interest
Rate is: 11.45% per annum paid monthly in arrears (Fixed).
(Please note that this interest rate is set to
reflect current market interest rates).
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FOR FURTHER
INFORMATION regarding applications for finance, please
contact Maccacorp Ltd on (07) 4155 9726. |
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Please note: The information in this section has been taken from the Maccacorp PDS Summary. Information should be read in conjunction with the Product Disclosure Statement (PDS) prepared by Maccacorp Ltd.
The PDS should also be read in conjunction with the Supplementary PDS's for PR 2007/74.
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