At the same time, demand for primary resources, including timber, is growing in line with the world's population. This is particularly true of highly sought-after timbers such as African Mahogany, the supply of which is already under pressure due to heavily-logged native stocks.
This situation presents unique long-term investment opportunities.
Investors are now able to participate in a commercial forestry project that will create a sustainable supply of premium African Mahogany, as well as investing in the land on which it grows.
Northern Australia Project Managers (NAPM) is pleased to present a unique opportunity to invest in one of the world's great timber species, African Mahogany, alongside one of its most valuable resources, prime agricultural land.
It's a unique and responsible approach to forestry investment structured around sound underlying supply and demand dynamics, proven growing methods, secure land tenure through ownership and experienced project management. Investors will participate in two complementary managed investment schemes:
- Invest in a commercial African Mahogany plantation, through the Premium African Mahogany 2012 Forestry Project (the Forestry Project); and
- Invest in high quality agricultural land on which the Forestry Project is established, through the Mahogany Land Trust (the Land Trust).
Why Invest:
There are many good reasons why you should invest in the Premium African Mahogany 2012 Forestry Project and the Mahogany Land Trust such as:
- Returns from the sale of Timber
- Strong Supply and Demand Dynamics
- Taxation Benefits
- Increasing Rural Land Values
- Experienced Management Team
- A Sustainable Source of Timber
Further information on these topics is detailed in the PDS.
About the Growing Region
The Douglas Daly region in the Northern Territory is proven as an ideal location for growing African Mahogany plantations.
Since the 1950's, the Commonwealth Science and Industrial Research Organisation (CSRIO), along with the Commonwealth and Northern Territory governments, have been conducting plantation trials of African Mahogany in the area.
More recently, African Mahogany Australia, the proposed silvicultural manager for the Forestry Project, has successfully established over 12,000 hectares of African Mahogany plantations in the region.
The Douglas Daly region is situated approximately 200km south of Darwin, making the location ideal as a gateway to Asia, which currently imports most of the world's African Mahogany.
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The soil types within the region are well suited to plantation forestry, and other agricultural pursuits, with consistent average annual rainfall of 1200mm. Additionally the area is situated over vast shallow aquifers fed with pure rainfall run off from the Arnhem Land plateau. Importantly, the region is located far enough from the coast to be considered at lower risk from tropical cyclones.
Investment Structure
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Premium African Mahogany 2012 Forestry Project
(ARSN 155 610 414) |
Mahogany
Land Trust
(ARSN 155 609 813) |
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Summary |
Invest in a commercial-scale African mahogany plantation, in the Douglas Daly region of the Northern Territory.
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Invest in agricultural land on which the African mahogany plantation will be established. |
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Application Price |
$9,000 per
Mahogany Interest
Ongoing costs apply – please see below.
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$2,500 per Property Unit
No ongoing costs apply. |
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Ongoing Costs |
Payable as set out in section 1.4 of the PDS.
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No ongoing costs payable. |
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Offer period |
The offer commences as of the date of this PDS and closes on 30 June 2012.
The Responsible Entity reserves the right to close the offer earlier. |
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Minimum investment |
One Mahogany Interest and one Property Unit.
The two investments are stapled, which means an application for the equivalent number of Property Units is required to accompany every application for Mahogany Interests.
For each Mahogany Interest issued in the Forestry Project, the Responsible Entity will arrange for an area of 1 hectare of Land to be planted with African mahogany seedlings.
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Minimum subscription |
The Land Trust and Forestry Project will proceed if a minimum subscription of 500 stapled units (i.e. 500 Property Units and 500 Mahogany Interests) are sold.
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Maximum subscription |
The maximum subscription under this offer is intended to be 1,000 Property Units and 1,000 Mahogany Interests. However, if sufficient Land can be secured, then the Responsible Entity may accept subscriptions in addition to these amounts.
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Term |
18-22 years
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Land to be sold after completion of Clearfall Harvest, at the discretion of the Responsible Entity |
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Product Ruling |
Australian Taxation Office PR 2012/6
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Product Ruling is not applicable |
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Responsible Entity |
Lowell Capital Limited
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