The Primary Yield Eucalypt Project aims to provide investors with high returns by investing in the business of growing, harvesting and selling Eucalyptus globulus - Tasmanian blue gums. The hardwood timber from the Project will form part of Australia's woodchip exports valued at almost $800 million in 2003/04.

Most Australian hardwood is currently supplied from native forest, a supply source that will decline rapidly in coming years as native forests are progressively locked up. Not only are plantations preferred from the preservation perspective, plantation timber currently attracts a price premium over native forest sources due to the uniform nature of woodchips produced by a single species plantation

The Project

The initial cost to invest in the Project is the Allotment fee of $6,270.

• Investors in the Eucalypt Project will become Growers, and enter into a Management Agreement to engage Primary Yield, an experienced forestry contractor, to establish, plant, maintain, harvest and sell their plantation.
• Investors will also enter into an Agreement for Lease to source land in Victoria and South Australia that meets Primary Yield's strict land suitability criteria.
• It is expected that the plantation harvest will take place between 10-12 years depending on the market conditions and growth of the plantation. Harvested trees will generally be sold for woodchip.
• Primary Yield has signed a heads of agreement with a company representing five major Japanese pulp and paper companies for the sale of the timber from each its Eucalypt projects.

Finance Options

Primary Yield can offer 100% finance with no deposit for investors.

 

 

Features

Up to 6% cash rebate (see below)

$6,270 application

IRR up to 9.34%

10-12 year term

100% tax deduction

No ongoing fees

Tax deduction for interest expense if finance option taken

 

 

Commissions & Cash Rebates

With tax effective investments we will receive a brokerage payment consisting of a 'commission' & 'marketing allowance' which is paid from the company that you invest with.  It is not deducted from your invested funds. With regards to Primary Yield Eucalypt Project, Fundbroker will receive an 8% commission and a 0% marketing allowance, making a total brokerage of 8% of the amount invested.  We will provide a cash commission rebate as a percentage of the funds you invest as shown in the table below:

 

 

The cash rebate is paid to you as soon as we receive our commission payment ex GST.

 

 

Further Information

For further information please download any of the following files or right click on the button and 'save target as' to download to your computer (all files are in *pdf format):

 

 

 

 

 

IMPORTANT : This information has been prepared without taking into account your investment objectives, financial situation and particular needs. National Financial Solutions Pty Ltd (the authorising licensee) makes no recommendations as to the merits of any investment opportunity referred to on this site or via email correspondence. All indications of performance returns are historical and can not be relied upon as an indicator for future performance. Any investment decision in the products listed is entirely yours. NFS bears no responsibility for the appropriateness of the investment to your circumstances.  NFS will not be held responsible for the performance or security of any investment going forward. Furthermore NFS recommends that you seek advice from an independent person as to the appropriateness of any investment that is placed through our service.

With all of these types of investments you should seek independent taxation advice to determine whether this investment suits your circumstances. Please read the important information section.

By listing this investment on our site we are by no means endorsing this investment, manager or product.

* IRR upper range from independent research report