The Macquarie Almond Investment 2009 provides you
with an opportunity to carry on a business of
cultivating, harvesting and selling almonds for
commercial gain. Your business will be on a large
scale, commercial almond orchard in the Sunraysia
district of Victoria, Australia. As the orchard has
been fully established, 100% of your investment will
consist of two year old trees.
Key benefits of Investing
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Portfolio
diversification -
agribusiness can help to
provide diversification in
your portfolio.1 |
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Annual
harvest - almonds are an
annual crop and the
investment is expected to
produce its first harvest in
year two, which means you
have the potential to begin
earning annual harvest
income shortly after your
investment. |
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• |
Risk
management - the
investment seeks to maximise
returns and is designed to
manage risk through a
combination of competitive
upfront costs and an ongoing
fee structure which (in
part) varies with returns,
so you pay less when returns
are lower. |
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Investment Loan available
- to finance up to 100% of
the application amount and
subsequent payments up to 30
October 2010.2 |
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Tax
certainty - potential
tax deduction for eligible
investors of at least 95% of
upfront costs and 100% of
all ongoing costs.3 |
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Supporting rural Australia
- investors will be making
an investment in rural
Australia which will create
employment opportunities and
support the local rural
economy. |
Why
invest with Macquarie?
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Stability -
Macquarie Agribusiness is
part of the Macquarie Group
- a large diversified
financial institution and
provides a long term
commitment to managing your
investment. By investing in
the Macquarie Almond
Investment 2009 you will
receive the benefit of the
comprehensive risk
management and operational
framework of the Macquarie
Group. |
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Track record
- earlier in 2009, Macquarie
successfully completed its
first commercial harvest of
almonds and harvest revenue
has been received
from Almondco, the processor and marketer of the
almonds. |
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Expert team
- we have an expert team
with over 40 years’ combined
experience in managing
horticultural projects. |
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Experience -
Macquarie Agribusiness has
been managing retail
agribusiness investments
since 2003 and has
successfully established and
managed a large scale,
commercial almond orchard
during that time. As a
group, Macquarie has
serviced clients around the
globe in the agricultural
sector for more than 15
years. Macquarie now has
approximately $1 billion in
funds managed or committed
across forestry, almonds,
viticulture, dairy and
pastoral businesses. Macquarie's
team is 150 strong and
manages more than 3 million
hectares of land. |
Why invest in Almonds?
Almonds are a versatile nut with a number of well documented health
benefits and are used as an ingredient in a wide variety of foods.
Globally, consumption has more than doubled over the past decade. The
Australian industry is well positioned to take advantage of this growing
demand; enjoying a more reliable climate than other producing countries,
producing nuts of a consistent and higher quality and benefiting from
counter seasonal advantages. The Australian almond industry is the
fastest growing almond industry in the world.4
Water supply
The water for the orchard is sourced directly from
the Murray river and Macquarie has purchased
high-security water licences to use this water. A
400 mega litre dam is also operational at the
orchard.
A state-of-the-art irrigation system is used to
supply water to the almond trees. The drip
irrigation system accurately places water and
nutrients to the trees, which minimises run-off into
waterways. This innovative system has enabled Macquarie to
reduce water usage by up to 50% in some cases.
How the investment works
As an investor you will grow, harvest and sell almonds with expert
support at all stages of the process. For each almond lot invested in,
you will be granted a licence to access and use ¼ hectare of land and
have rights to use the orchard assets.
|
Establishment |
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Small seedlings are planted and almond budwood
grafted on to the trees. In the Macquarie
Almond Investment 2009, the trees were established in 2008. |
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Growing |
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The trees are managed
by Macquarie's expert team including training and pruning, weed spraying, supply of water and
fertilisation, and management of irrigation infrastructure.
In 2010, bees will be introduced for pollination
and the trees should begin to bear commercial quantities of
almonds. Trees should reach full maturity after approximately
six to seven years from planting. |
|
Harvest |
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The first harvest will take place in 2011
and annually thereafter. |
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Processing and sale |
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Almondco has been engaged to process and sell
the almonds giving you comfort that even before the trees have been planted, agreements
will be signed for the purchase of your almonds. Almondco is a
long established processor and marketer of almonds. |
Financing options
You have the option to borrow up to 100% of the
application amount (subject to approval) with the potential to receive a
tax deduction for your interest payments. The interest rates below are
indicative.
|
Loan term |
Repayment type |
Indicative
interest rate5 |
Repayment |
Loan establishment
fee |
|
1 year |
Principal only |
0% |
12 equal monthly instalments |
1.00% of the loan amount6 |
|
5 years |
Principal and interest |
10.40% p.a. |
Monthly instalments7 |
Nil |
|
7 years |
Principal and interest |
10.90% p.a. |
Monthly instalments7 |
|
Who may be interested in this investment?
Investors who:
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are looking to diversify their investment
portfolio; |
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want potential for annual harvest income —
possible after year two; |
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have adequate cashflow to meet ongoing payment
obligations; |
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are looking for potentially tax efficient
investment solutions; |
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want the potential to earn income outside
superannuation; |
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have a long term investment horizon; |
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have reliable income stream but limited upfront
capital (if borrowing to invest); |
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would like to share the investment with a
non-working spouse or SMSF. |
Risks
As with any investment there are risks to be
considered, and as this is a long term agricultural
investment, many variables may affect the
performance of the investment. As well as general
investment risks, risks specific to the project
include demand and price risk, foreign exchange risk
and agricultural risks resulting in loss of crops or
trees such as pests, frost, water availability and
drought and fire. The risks are set out in the
Product Disclosure Statement and investors should
read this document and obtain their own financial,
legal and tax advice.
Making an application:
|
Minimum investment |
$9,300
per Interest |
|
Amounts payable in 2009 |
The fees below are applicable for
the first year of the project only.
Additional annual fees apply
to subsequent years including variable costs. |
|
Payable |
Amount per interest (incl GST) |
Tax deductible8 |
Can be financed |
|
On application (on or before 15 June
2010) |
$9,300 |
Yes9 |
Yes — up to 100% |
|
31 October 2010 |
$2,500 |
Yes |
Yes — up to 100% |
|
1
Past performance is not a reliable indicator of
future performance.
2
Subject to the lender’s normal lending criteria.
See Section 9 ‘Investment Loan’ of the Product
Disclosure Statement (PDS).
3
If the conditions in the Product Ruling are met.
See Section 8 ‘Tax Treatment’ of the PDS for
details. The Product Ruling 2009/49 is only a ruling
on the application of taxation law and is in no way
expressly or impliedly a guarantee or endorsement of
the commercial viability of the Macquarie Almond
Investment 2009 or the soundness or otherwise of the
Macquarie Almond Investment 2009 as an investment,
or of the reasonableness or commerciality of any
fees charged in connection with the Macquarie Almond
Investment 2009. The Product Ruling is only binding
on the Commissioner if the Macquarie Almond
Investment 2009 is implemented in the specific
manner provided in the Product Ruling and the
circumstances of investors are as described in the
Product Ruling. You can view a copy of the Product
Ruling above.
4 On a percentage basis.
5 These interest rates are indicative only. The
actual interest rate applied to an investment loan
will be the rate indicated at
www.macquarie.com.au/almonds
on the day on which the loan is approved.
6 Your Loan Establishment Fee will be included in
your Investment Loan amount.
7 The monthly repayment instalments for each
drawdown shall be in equal amounts over the term or
in such other amounts for each month as Macquarie
notifies the investor in writing. The allocation of
monthly payments between principal and interest will
be as determined by Macquarie and notified to the
Investor from time to time.
8 If the conditions in the Product Ruling are met.
See Section 8 ‘Tax Treatment’ of the PDS for
details. The Product Ruling 2009/49 is only a ruling
on the application of taxation law and is in no way
expressly or impliedly a guarantee or endorsement of
the commercial viability of the Macquarie Almond
Investment 2009 or the soundness or otherwise of the
Macquarie Almond Investment 2009 as an investment,
or of the reasonableness or commerciality of any
fees charged in connection with the Macquarie Almond
Investment 2009. The Product Ruling is only binding
on the Commissioner if the Macquarie Almond
Investment 2009 is implemented in the specific
manner provided in the Product Ruling and the
circumstances of investors are as described in the
Product Ruling. You can view a copy of the Product
Ruling by visiting the ATO website
http://law.ato.gov.au/atolaw/findrul.htm
and typing in the Product Ruling number 2009/49.
9 The Fixed License Fee of $440 incurred in the
2009-2010 income year will not be deductible in full
and deductibility will be reduced at the rate of
$36.67 per month that the grower is not an investor
in the 2009-2010 income year.
IMPORTANT INFORMATION
This information has been prepared by Macquarie
Alternative Assets Management Limited ABN 30 103 237
181, AFSL 225758, (“MAAML”) and is current as at 29
September 2009.
An invitation to apply for interests in the
Macquarie Almond Investment 2009 is made by MAAML in
the Product Disclosure Statement dated on or around
6 April 2009 (PDS). The PDS is available above. In
deciding whether to acquire or continue to hold an
investment in the Macquarie Almond Investment 2009,
investors should obtain the PDS and consider its
contents.
The loans are offered by Macquarie Bank Limited ABN
46 008 583 542 and are subject to approvals.
This information is prepared by MAAML is general
information and does not take account of any
investors objectives, financial situation or needs.
Before acting on this general information, investors
should therefore consider the appropriateness of the
information having regard to their situation. We
recommend investors obtain financial, legal and
taxation advice before making any financial
investment decision.
The Macquarie group does not give, nor does it
purport to give, any taxation advice. The taxation
discussion in this document is based on laws current
at the time of writing. Those laws and the level of
taxation may change. The application of taxation
laws to each investor depends on that investor s
individual circumstances. Accordingly, investors
should seek independent professional advice on
taxation implications before making any investment
decisions.
MAAML or its associates, officers or employees may
have interests in the financial products referred to
in this information by acting in various roles
including as investment adviser, broker, or lender.
MAAML or its associates may receive fees, brokerage
or commissions for acting in these capacities. In
addition, MAAML or its associates, officers or
employees may buy or sell the financial products as
principal or agent. Investors may contact MAAML on
1800 617 900.
Investments in the Macquarie Almond Investment 2009
are not deposits with, or other liabilities of,
Macquarie Bank Limited ABN 46 008 583 542 or of any
Macquarie Group company, and are subject to
investment risk, including possible delays in
repayment and loss of income or principal invested.
None of Macquarie Bank Limited, MAAML or other
member companies of the Macquarie Group of companies
guarantees any particular rate of return, the
performance of, or the repayment of capital from
this managed investment scheme.
Simply download an Investment
Brochure/PDS above. It’s that easy!
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