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Willmott Forests Premium Forestry Blend 2009 |
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Cash Rebate |
8.25% |
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Closing Date |
CLOSED |
| Minimum
Investment |
$5,000 (ex
GST) |
| Term of Project |
16 years |
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Research |
AAG |
 |
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Adviser Edge |
 |
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ATO Product Ruling |
2008/60
2008/60A |
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FINANCE & 12 MONTH INTEREST FREE APPLICATIONS
| All finance &
12 Month Interest Free applications must be submitted by
3.00pm (AEST)
TUESDAY 30 JUNE 2009; |
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• |
Willmott Forests’ 12 Months
Interest Free Loan –
NO
DEPOSIT REQUIRED |
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• |
CBA Finance 3, 5, 7, 10 and 12 Year (all with 3 year interest
only option) payment options available –
NO DEPOSIT REQUIRED |
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Applications can be received via fax
or email and
originals express posted to Head Office immediately. |
CASH APPLICATIONS
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Cash
applications can be submitted by 8.00pm(AEST) TUESDAY 30
JUNE 2009 |
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If you submit a cash application via fax or
email evidence of payment must also be included such as;
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A bank transfer receipt or; |
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A copy of the paper cheque (must be dated on or
before 30 June 2009). |
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Fax: (03) 9696 5567
Email: applications@willmottforests.com.au
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Executive Summary
The Willmott Forests Premium Forestry Blend Project
is an opportunity to invest in three timber species
to deliver three distinct sources of income by
becoming a Grower in the Willmott Forests Premium
Forestry Blend Project – 2009 Product Disclosure
Statement (ARSN: 131 549 589).
The Willmott Forests Premium Forestry Blend Project
involves growing Radiata pine softwood for the
production of sawlogs and pulp logs, Silky Oak to
produce high value hardwood sawlog for use in
panelling, furniture, joinery and veneers, and
She-oak biomass to produce renewable energy.
Company Overview
Willmott Forests Limited
is a publicly listed (ASX Code: WFL), quality endorsed company that
establishes, manages, harvests, processes and
supplies timber products from plantation grown
resources on behalf of our Growers and shareholders.
Project structured
Growers are issued Woodlots and appoint the
Responsible Entity (Willmott Forests) to conduct all
necessary plantation forestry activities on their
behalf (through executing a Land Sourcing and
Forestry Management Agreement). Each Woodlot permits
the Grower to conduct plantation forestry activities
on specific areas of land on which a minimum number
of seedlings of the relevant species will be
planted. Woodlots issued to Growers who invest in
the Willmott Forests Premium Forestry Blend
Project during a particular
financial year form part of the Pool referable to
that financial year and Growers who’s Woodlots are
referable to that Pool share in the proceeds on a
pro-rata basis from the sale of timber planted in
respect of that Pool.
A Woodlot is equivalent to 5,200 square
metres
(0.52 of a hectare) of land. This area is further
allocated to the three species within the Project as
follows:
·
She-oak: approximately 300m2
· Radiata
pine: approximately 3,500m2
· Silky
Oak: approximately 1,400m2
Cost
Application Price
The application price of each Woodlot is $5,000 (“application
price”). The application price does not include an allowance for
GST, as GST is not expected to be payable in respect of the Application
Price.
The application price is fully tax deductible in accordance with ATO
Product Ruling PR
2008/60*.
Maintenance, Rent and Marketing Fee
The Responsible Entity will charge a fee for each Pool equal to 10%
of the aggregate of the She-oak amount, Radiata pine amount and the
Silky Oak amount for the relevant Pool for Maintenance (4%), Rent (5%)
and Marketing (1%).
*The Product Rulings are rulings
given by the ATO on the application of taxation law and is in no way
expressly or impliedly a guarantee or endorsement of the commercial
viability of the Investment or the soundness or otherwise of the
Investment as an investment, or of the reasonableness or commerciality
of any fees charged in connection with the Investment. The Product
Rulings are only binding on the Commissioner if the Investment is
implemented in the specific manner provided in the Product Rulings. |
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Distribution
|
Species |
End Products |
Year of
Income Distribution
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She-oak |
Biomass to produce renewable
energy |
3 |
5 |
7 |
9 |
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Radiata pine |
Structural timber, newsprint,
pulp |
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13 |
15 |
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Silky Oak |
Veneer, high value decorative
timbers |
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10 |
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15 |
The year of income distribution in the above table is anticipated and
may vary depending on a number of factors including growth rates, the
actual time of planting and market conditions.
It should be noted that the She-oak trees will not be harvested within
four years after the end of the financial year in which the Grower is
issued Woodlots. For Growers entering into the Project on or before 30
June 2009, the She-oak trees will not be harvested prior to 1 July 2013.
Each year in respect of a Pool is a period of 12
months commencing on, or on the anniversary of, the completion of
planting of seedlings in respect of the Pool. Typically planting will
not be completed until approximately 15-18 months after the end of the
income year during which the Grower is issued Woodlots. |
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Payment Options
CASH:
Cost per Woodlot
= $5,000 per Premium Blend Woodlot (“PBW”) (no minimum investment)
OR
FINANCE:
100% terms payment
options are available to approved applicants:-
Finance term offered by
Willmott Finance Pty. Ltd.
|
Term |
Repayment Type |
Repayment |
|
1 Year |
Principal |
12 equal monthly repayments. |
Finance terms offered by
the Commonwealth Bank of Australia (CBA)
Principal and Interest
Loans all with 3 year interest only options available.
|
Finance |
Repayment Type |
|
3 Years |
Principal and Interest
(with 3 year interest only
option)
|
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5 Years |
Principal and Interest
(with 3 year interest only
option)
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7 Years |
Principal and Interest
(with 3 year interest only
option)
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10 Years* |
Principal and Interest
(with 3 year interest only
option)
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12 Years* |
Principal and Interest
(with 3 year interest only
option)
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* Minimum investment 7 woodlots - $35,000
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Repayments
Willmott Finance Pty. Ltd. - 12 Months
Interest Free Loan:
Repayments will be direct debited
from your nominated bank account on the last business day of
each month in Victoria commencing in July, following the year of
investment
CBA Finance:
Loans will be available
both at fixed or variable interest rates.
The interest
rate for fixed interest loans will be set for the period of the
loan on June 30 in the financial year of investment.
Finance for this project is provided by Commonwealth Bank of
Australia. Repayments for finance arrangement offered will be
direct debited from your nominated bank account on the first
business day of each interest period in respect of the finance
option selected. Repayments are due on the first business day of
each month in Victoria commencing on the following month
following the financial year of the investment.
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The Regions
The Project will
establish softwood plantations in regions throughout eastern
Australia, which have existing commercial softwood plantations,
suitable land characteristics, infrastructure and markets.
Willmott Forests intends to establish softwood plantations
for its Project on properties in the Bombala; Murray Valley and
Central Tablelands regions of southern NSW, the South West
Victorian (Green Triangle), Central Gippslands, the
Ballarat-Otway and North East Victoria (Murray Valley) regions
of Victoria through its commercial arrangement with Hancock
Victorian Plantations Pty Ltd.
The She-oak and
Silky Oak plantations will be established in
the Northern Rivers region of New South Wales or in southeast
Queensland. This
region extends along the New South Wales north coast from the
southern Queensland border to south of Woy Woy and inland to the
Great Dividing Range. The average annual rainfall ranges between
900mm to 1,800mm per annum.
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The Timber Species
The Willmott Forests Premium
Forestry Blend Project combines three species creating multiple
income streams:
Radiata pine
A high value, lower
risk plantation species used mostly for building applications in
Australia and a wide range of pulp and paper products. Because
Radiata pine has a 25 year maturity profile (it is
‘long-rotation’ timber), the Responsible Entity will enter into
an agreement to sell the standing timber during Year 15.
She-oak
A fast growing native species. The timber is
anticipated to be harvested in Years 3, 5, 7 and 9 and is grown
to produce She-oak biomass for the production of renewable
energy.
Silky Oak
A native hardwood prized for
high value veneer and decorative timber uses; that is
anticipated to be harvested in Year 15.
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100% tax deductibility
The
application price for Woodlots is expected to be 100% tax
deductible. The Australian Taxation Office has issued Product
Ruling
2008/60 in
respect of the Willmott Forest Premium Forestry Blend Project –
2009 Product Disclosure Statement that confirms the tax
treatment of the Project for Growers who enter the Projects on
or before 30 June 2009. You should seek your own taxation advice
if you have any further queries in relation to this issue. |
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ATO Product Ruling
An
ATO Product Ruling is a ruling on the application of taxation
law and is in no way an expressed or implied guarantee or
endorsement of the commercial viability of the Project, of the
soundness or otherwise of the Project as an investment, or of
the reasonableness or the commerciality of any fees charged in
connection with the Project.
Product Ruling is only
binding on the Commissioner of Taxation if the Project is
implemented in the specific manner provided in the Product
Ruling.
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Insurance
Willmott Forests’ arranges and pays for at least $10 million
public liability insurance for the plantations for the duration
of the Project. |
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Survival/ Stocking Guarantee
Willmott Forests provides you with
a Stocking Guarantee for your Woodlots in the Willmott Forests
Premium Forestry Blend Project for two years from the date a
Grower is registered as the holder of a Woodlot in the Project.
During this period if more than 15% of a Grower’s
trees which are referable to the Pool are ‘materially damaged’,
the Responsible Entity will, at its own expense (unless
applicable insurance has been arranged by the Responsible
Entity) remove the damaged or destroyed trees, prepare the
ground and acquire and plant new cuttings or seedlings of a
quality comparable to the original cuttings or seedlings planted
in accordance with the Grower’s Land Sourcing and Forestry
Management Agreement.
Refer to section
15.1.12 of the “Further Information” section on page 63 of the
Willmott Forests Premium Forestry Blend Project – 2009 Product
Disclosure Statement for further details of the Stocking
Guarantee and the exclusions that apply.
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Expiry of
Stocking Guarantee
At the end of the Stocking
Guarantee period, the Responsible Entity will maintain a
replacement and re-establishment insurance in relation to fire
in respect of the She-oak, Radiata pine and the Silky Oak
plantations, at the Responsible Entity’s own expense for a
further five years. |
Ongoing Insurance
Yes, you will need to insure your trees, upon
expiry of the seven years (i.e. two years Stocking Guarantee and
a further five years replacement and re-establishment
insurance).
The Responsible Entity will use reasonable
endeavours in respect of each Pool to arrange, each year until
completion of the sale of the She-oak trees, Radiata pine trees
and the Silky Oak trees in respect of that Pool, for the issue
to the Responsible Entity of an insurance policy in respect of
fire which covers such trees for an amount of at least the
Application Price of each Woodlot referable to the Pool. The
Responsible Entity may recover a pro-rata proportion of:
(a) the cost of such insurance; and
(b) any other cost
in connection with such insurance,
from each Grower who’s
Woodlots are referable to the Pool, calculated by reference to
the proportion of the total number of Woodlots referable to the
relevant Pool which are held by the Grower.
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Project Risks
As with any investment
of this nature, there are a number of risks relating to the
forestry business. There is no guarantee that the investment
will generate positive returns. Risk is a factor that is present
in any investment you make.
Whilst the
Manager’s believes there is a bright future for professionally
managed forestry plantations, the Manager’s are not in a
position to guarantee returns.
For details on some of the
Project risks that may affect your investment, please refer to
Section 5 – Risks in the Willmott Forests Premium Forestry Blend
Project – 2009 Product Disclosure Statement (pages 18-19).
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Disclosure of Fees
Please refer to Section 10 –
Fees and Costs in the Willmott Forests Premium Forestry Blend
Project – 2009 Product Disclosure Statement for further
information regarding the fees and costs applicable to the
project.
These fees and costs (other than insurance) may
be deducted from your application moneys or Gross Timber
Proceeds.
Insurance premiums and associated costs are set
out in further details in section 10.7 and 10.8 (page 32) of
Willmott Forests Premium Forestry Blend Project – 2009 Product
Disclosure Statement.
You should read all of the
information about fees and costs in the Product Disclosure
Statement as it is important to understand their impact on your
investment.
IMPORTANT NOTICE
This information has been prepared by Willmott Forests Limited,
ABN 17 063 263 650, AFS License 233215, and is current as at 20
August, 2008.
The information contained in this document is provided for
general information purposes only. It has
been prepared without taking into account any potential investors
personal objectives, financial situation or needs.
The taxation
consequences for an investor will depend on their individual
circumstances. We recommend advisers seek their own legal and taxation
advice.
The Willmott Forests Premium Forestry Blend Project –
2009 Product Disclosure Statement is dated 20 August, 2008 and is issued
by Willmott Forests Limited as the Responsible Entity of the Willmott
Forests Premium Forestry Blend Project which was established under the
Constitution dated 11 June 2008 (as amended) and relates to the Willmott
Forests Premium Forestry Blend – Product Disclosure Statement.
Each applicant will become a Grower in the Willmott Forests
Premium Forestry Blend Project which is not intended to be a
short-term investment and will be subject to the normal risks
associated with commercial plantation forestry. Willmott Forests
Limited does not guarantee any particular return to Growers or
that any particular expenditure will be tax deductible.
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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