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Rewards Group Teak Project 2008 |
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Cash Rebate |
8.25% |
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Closing Date |
CLOSED |
| Minimum
Investment |
$6,000 (ex
GST) |
| Term of Project |
20 years |
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Research |
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AAG (648kb) |
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Lonsec (745kb) |
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ATO Product Ruling |
2008/43 |
Project Details
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Number of Woodlots on offer -
4,000 |
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Size of Grove - 0.2 hectares |
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No ongoing
costs. An equal amount of 22%
(inc GST) of each Grower's share
of net sale proceeds will be
deducted from each harvest to
cover licence fees and ongoing
maintenance fees. |
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Annual insurance
fees will apply if a finance
option is taken. |
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Trees will be
harvested on a progressive basis
between the ages of 6 and 18
years. |
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Finance options with 100%
gearing available. |
Investing in the Rewards Group Teak Project 2008 will have significant environmental benefits and will provide a plantation source of teak which is expected to reduce harvesting pressure on depleting native teak forests.
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The Project aims to produce teak
poles and sawlogs. Teak is a premium quality
tropical hardwood renowned for its strength,
durability and weather resistant qualities. The
market value of teak is greater than that of
most other plantation timbers. |
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The trade in teak logs and
timber has occurred for centuries. The majority
of teak produced is either consumed internally
in the country of origin or used in the
manufacture of export products for the Western
market. |
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The Project will ease pressure
on native teak supplies in Asia, help reduce
soil degradation on farmland in north Queensland
and create a sink for greenhouse gases. |
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The term of the Project is
expected to be approximately 20 years, with the
first harvest occurring when the trees are at
least 6 years old. |
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In 2008, Rewards Group exported
its first shipment of teak poles to India. |
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Significant tax deductions for
expenditure incurred by Growers, will be
supported by an Australian Taxation Office
Product Ruling. |
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Product Disclosure Statement PDS (3.70mb) |
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Finance Package |
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What is Teak?
Teak (Tectona grandis) is commonly
considered by ship builders and outdoor
furniture manufacturers to be the world’s most
versatile, durable and valuable hardwood. Teak
is a dense, coarse, close-grained hardwood. It
contains high levels of resinous oils that allow
it to be naturally resistant to moisture,
insects and pervious to the drying effects of
weather.
Teak also contains silica, a sand-like compound
that permits resistance to fungal decay, water
rotting, warping, shrinking, swelling and many
damaging chemicals. It will not rust or corrode
metals it comes in contact with and it can
withstand the elements of all seasons, with its
beauty increasing with age.
No other
wood compares to teak regarding its durability,
elegance, stability and low maintenance, making
it the ultimate choice for furniture
construction and ship building worldwide.
Prices On the UP AND UP!
Based on the past 30 years of teak price
increases, the value of teak trees should grow
substantially every year regardless of the
instability of global financial markets.
The growing demand for teak timber coupled with
limited geographical growing areas and shrinking
international supply suggests that increases in
teak prices should continue to climb at a steady
rate, as it has for the past 30 years.
Limited Supply matched with High Demand: A POSITIVE RESULT
The natural forests of teak around the world are
not be able to meet current demand and will not
be able to meet future demand for teak.
It is widely believed that the supply of teak
into India from West Africa (from which 60% of
India’s current imports originate) will be
completely at an end in 5 years time. That is to
say, the supply from West Africa of 1,500,000m3
per annum of teak will cease in 5 years time.
Teak prices in the past 30 years have risen at
more than 7.5% per annum compounded.
Illegal felling of teak in West Africa and
Indonesia and other countries is on the rise, a
clear indication of rapidly rising prices and
rapidly falling supply. In 1982, the domestic
Indian market consumed more than 7,500,000m3 of
teak per annum (3 times more than it does
today). Due to chronic over harvesting around
the world, illegal felling and only a small
sustainable teak plantation industry, the Indian
domestic consumption figure has fallen to
2,500,000m3 per annum.
The world teak marketplace can rapidly and
easily absorb a new supply of at least 500,000m3
per annum of Australian plantation teak. There
is a stark and obvious need for Australian
plantation grown teak to enter the world teak
market place.
The Rewards Group
Growing the right commodity for the right market
at the right time is a hallmark of Rewards’
projects. Rewards’ focus is on only growing
'high value, low volume' commodities. This is
our unique selling proposition and our focus for
a profitable outcome for Rewards’ Growers.
By selecting Rewards Group to manage your
investment in the Teak Project 2008, you will be
selecting a farm manager that offers the
following significant benefits to participating
Growers:
Well researched projects: Each year
Rewards continues to receive high ratings from
independent research houses, with extensive
experience in determining quality agribusiness
projects.
Competitive finance arrangements: By
providing attractive finance packages, Rewards’
projects complement many wealth creation
strategies for participating Growers.
Owner Managers: The shareholders of
Rewards Group actively manage Growers
investments on a day to day basis. Rewards'
focus is on returns to Growers - not ASX listed
shareholders.
Rewards Group was founded with the vision of
developing quality agribusiness projects using
first class technical expertise.
The agribusiness industry represents a
legitimate and appropriate way to generate
investment in commercial scale primary
production projects.
Rewards Projects Ltd meets the need within this
industry for investment alternatives, backed by
quality management.
Since 1999, Rewards has successfully raised in
excess of $220 million for the following
projects to year end 2007.
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Brushwood - 390 hectares |
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Sandalwood – 7,104 hectares |
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Teak – 3,354 hectares |
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Tropical Fruits - 1,047 hectares |
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Viticulture - 95 hectares |
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Berries - 190 hectares |
What does a Woodlot Cost?
Becoming a Grower in the Rewards Group Teak
Project 2008 can be easy by using either your
own funds or borrowing from an appropriate
lender.
An upfront fee of $6,600 (inclusive of GST) is
payable per Woodlot on application. Growers who
are registered for GST may be able to claim the
$600 GST when a completed Business Activity
Statement (BAS) is lodged. Growers are
recommended to register and claim the GST.
No ongoing costs will be charged to Growers on
an annual basis, other than a small amount
annually for insurance against fire and other
insurable events such as windstorm and hail.
A maintenance fee of 8.8% (inclusive of GST) of
the Grower’s share of the net sale proceeds will
be deducted and received by the Responsible
Entity from the sale of timber from each harvest
for maintaining the Grower’s Woodlots.
A fee of 13.2% (inclusive of GST) of the
Grower’s share of the net sale proceeds will be
deducted and received by Rewards from the sale
of timber from each harvest for the licence of
Grower’s Woodlots.
The teak trees will be progressively harvested
between the ages of 6 and 18, with the precise
timing, number of trees per harvest and number
of harvests to be determined by Rewards Projects
Ltd at the relevant time.
DISCLAIMER
Rewards Projects Ltd has issued a Product
Disclosure Statement dated 24 April 2008 (PDS)
for the Rewards Group Teak Project 2008 (ARSN
130 210 552) which, details the terms of the
offer. Anyone wishing to invest should consider
the contents of the PDS and complete the
application form in the PDS.
The information above does not constitute
personal investment advice and has been prepared
without taking into consideration any particular
client's objectives, financial situation or
needs. Because of this, before acting on any
information in this brochure, you should
consider whether the advice is appropriate for
your objectives, financial situation and needs
and consult an independent professional if
necessary. You should read the PDS or other
offer document relating to the Project and
consider this before making any decision about
whether to invest.
The information contained above is provided in
good faith and believed by Rewards Projects Ltd
to be accurate at the time of completion.
However, it makes no representation or warranty
as to the accuracy, reliability or completeness
of this information. Except to the extent that
statutory liability cannot be excluded Rewards
Projects Ltd, its directors, employees,
associates, related entities, agents, advisers
and consultants have no liability (including
liability to any person by reason of negligence
or negligent misstatement) for any statements,
opinions, information or matters (expressed or
implied) arising out of, contained in or derived
from, or for any omissions from, the information
provided in this brochure. Nor do they guarantee
the success or performance of any Project, the
payment of any return from an investment in any
Project, or the taxation consequences of any
investment in a Project. |
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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