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Timbercorp Olive
2008 Project |
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Cash Rebate |
8.25% |
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Closing Date |
CLOSED |
| Minimum
Investment |
$10,364 (ex
GST) |
| Term of Project |
23 years, plus 2 year extension if
over the term of the Project fails to
exceed 9.5% IRR |
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Research |
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AAG |
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Adviser Edge |
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Lonsec |
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ATO Product Ruling |
2007/105 |
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Telephone: |
(03)
8615 1200 |
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Fax: |
(03)
9670 4504 |
Since
1992, Timbercorp has raised more than $1.7
billion in funds invested into
agribusiness projects by more than
18,000 investors from around Australia.
Timbercorp
currently manages:
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more
than 96,600 hectares of eucalypt
plantations; |
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6,622 hectares of olive groves, including one of the
world’s largest olive groves on a single site; |
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11,862 hectares of almond orchards, the largest single
managed almond orchard estate in Australia; |
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1,345
hectares of citrus orchards; |
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412
hectares of table grape vineyards; |
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816
hectares of mangoes; |
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1,207
hectares of avocados; and |
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8.2 hectares of glasshouse tomatoes. |
Timbercorp is an ASX/S&P 200 listed company with
consolidated net assets in excess of $519.8 million at 30
September 2007. The Timbercorp group of companies has
been established for 15 years and they have built a strong
financially sound business to ensure that they manage your
investments throughout the project term. They are a market
leader in agribusiness investment with a proven track
record.
About the project
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Product Disclosure Statement PDS |
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Loan Explanation Terms |
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Ongoing Loan Explanation Terms |
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Loan Application Form |
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Ongoing Loan Application Form |
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A
commercial investment in Australian
extra virgin olive oil with established end markets |
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100%
tax deductible supported by ATO Product
Ruling PR2007/105 |
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Build
wealth through attractive after tax
returns over the 23 year term |
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2 year
project extension if after tax IRR does
not exceed 9.5% p.a. by the end of the
term |
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Flexible finance terms |
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Ability to participate as a joint
venture grower with another entity, such
as your self managed super fund |
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Grove
established on premium olive growing
land in one of Australia’s premiere
olive growing regions |
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Grove
managed by Boundary Bend Estate –
Australia’s leading olive management and
processing company. |
Agribusiness is a
specialised activity
outside of the traditional
investment classes. Well managed,
and undertaken
on a large scale, it can
provide attractive returns
and form a valuable part of
a diversified portfolio.
Timbercorp is one of
Australia’s leading
agribusiness investment managers. They source, fund and
manage high quality, large scale agribusiness projects for
investors looking for attractive tax advantaged returns.
The 2008 Timbercorp Olive Project is an opportunity to
participate in horticulture and establish a future long-term
income stream with immediate tax benefits supplying
quality extra virgin olive oil for domestic and export sale to
established markets.
Timbercorp’s olive oil has garnered numerous awards in recognition of its outstanding quality and
is testified by it having received awards at the prestigious Gold Orciolo event, one of Italy’s most
important olive oil trade shows, for 3 years in succession. It was also ‘Best Oil in Show’ at the
2005 Sydney Royal Olive Oil Competition, ‘Champion Varietal Oil’ at the 2007 Sydney Royal Olive
Oil Competition and received over 30 medals at various shows in 2006 and 2007, including 6
gold medals and 5 ‘Best-In-Class’ from 35 entries in Australian extra virgin olive oil competitions.
How does the project
work?
You will become an olive grower in a large-scale olive grove that is expected to enter commercial production from 2009 by:
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entering into a licence to use two or more identifiable allotments of land of approximately ¼ hectare each, called Grovelots; |
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engaging Timbercorp to harvest and procure the processing of the olives grown on your Grovelots, primarily into premium
extra virgin olive oil; and |
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appointing Timbercorp to market the olive oil processed from your Grovelots. |
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What fees are payable per Grovelot?
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Application Moneys
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$5,700 |
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31 Oct 2008
31 Oct 2009 |
$1,650 (rent and
management fee)
$1,650 (rent and management fee) |
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Ongoing annual fees
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Licence Fee:
$600 in Oct 2010 and Oct 2011; $1,147.48 in Oct 2012; and then $1,177.31 in Oct
2013 and each subsequent year, indexed for inflation in and from Oct 2014.
Farm Operating Costs:
Commencing Oct 2010 and each
subsequent year
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Management fees deducted
from crop proceeds |
Deferred management fee of 1.65% of Net Proceeds for the 2009 financial year and 3.3%
for 2010-2031 or until 2034 if the Project is extended.
* Costs include GST
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Timbercorp's Project
Investment Criteria
In choosing crops for projects, Timbercorp draws
on almost two decades of experience in
establishing some of Australia’s largest and
most successful agribusiness projects. That
experience has defined key selection attributes,
essential when striving to deliver sound
commercial returns. These attributes are all
clearly present in the 2008 Timbercorp Olive
Project.
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CRITERIA
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EXTRA VIRGIN OLIVE OIL |
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1 Secure End Markets |
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Established sales channels in domestic and/or export markets
with growing demand and linkages with strategic marketing partners. |
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2 Strong Industry
Fundamentals |
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Detailed analysis of global market
fundamentals indicating long term strength in demand and prices. |
Australian olive oil consumption experienced more than 600% growth over the past 20 years.
Australian production is 1% of world production and less than a third of domestic consumption.
Total value of world trade in olive oil and other olive products almost US $7 billion. |
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3 Project Management |
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Operations managed by industry
specialists with a strong performance history.
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Boundary Bend Limited (BBL), Timbercorp’s 18.7% owned strategic partner,
is a fully integrated producer and marketer of the highest volumes of olive
oil in Australia, with 2.5 million trees currently under management.
BBL has consistently produced yields that are 25% to 35% higher than the
average achieved by some of the most modern, irrigated olive groves around
the world. BBL won Australian Agribusiness Exporter of the Year in 2007. |
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4 Competitive Advantage |
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Scope to apply Timbercorp’s business
model of large–scale projects in quality
produce using enhanced technologies
and integrated supply chains. |
Large volumes of premium grade extra virgin olive oil produced through world’s best practice.
The quality of the olive oil produced by BBL is testified by it having won multiple awards
including Distinction in the past three years at the ‘Gold Orciolo’ show, one of the most
prestigious olive oil trade events in Italy. |
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5 Location and Agronomics |
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Quality and quantity of suitable
land with the right climate, soil, water and transport infrastructure. |
Boundary Bend (Vic)
Boundary Bend, in northern Victoria, has atmospheric
conditions that are highly suitable to olive production and
mirror conditions in traditional olive production areas in
southern Europe. |
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Factors Affecting
Project Returns
The Project is a long-term commercial horticultural project and, like any agricultural venture, involves risks. You should
carefully consider the risks associated with the Project, detailed in the PDS, and whether it is a suitable venture for you,
before making an application to participate in the Project. Neither Timbercorp Securities nor any other person involved in the
Project guarantees a return or any particular return from investing in the Project. A discussion of factors affecting returns is
set out in section 8 of the PDS.
WARNING
This document is a summary of the Project only and you must read the entire PDS in full in order to be fully informed about the Project.
Neither this summary nor the PDS takes into account your investment objectives, financial situation or particular needs. You should consult your financial
adviser before you decide whether the Project is an appropriate investment for you.
Product Ruling PR 2007/105 is only a ruling on the application of taxation law to the specific arrangements described in the Ruling as at the date the Ruling
was issued and is in no way a guarantee or endorsement of the reasonableness or viability of the Project. Product Rulings are issued subject to conditions
and you should read the PDS and Product Ruling PR 2007/105 for details of the conditions that apply.
No person or corporation associated with Timbercorp Securities Limited (AFSL 235653) or Timbercorp Limited guarantees, warrants or underwrites the
performance of the 2008 Timbercorp Olive Project or any particular return. |
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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