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W.A. Blue Gum Project
W.A. Blue Gum Project ARSN 092 289 266 is a managed investment scheme registered under the Corporations Act 2001. The Project involves the establishment of Eucalyptus globulus (Tasmanian Blue Gum) plantations for the harvesting and sale of timber.
The Project is to be established on land in the south west of Western Australia. The land offered under this Product Disclosure Statement has an unusually high anticipated yield of wood. The land will have a weighted average mean annual increment ("MAI") of not less than 34 cubic metres per hectare per annum. This means that it is anticipated that at the end of 10 years growth, approximately 340 cubic metres of wood per hectare will have grown upon the land.
The Project Manager will divide the Project Land into allotments of 1 hectare each. The minimum area leased by each Grower is 3 hectares. Growers will contribute a minimum of $15,675 on a GST inclusive basis (being the amount necessary to establish and plant 3 hectares of plantations at $4,750 plus GST per hectare) and thereafter in multiples of $5,225 (including GST) for each extra hectare.
In addition to the payment of $4,750 (plus GST) per hectare, Growers are required to pay both an annual sum for rental of the leased property and fees for the ongoing management of the Plantations. The first annual sum for rental will be $400 (plus GST) per hectare (indexed from 30 June 2008) and is payable on 30 November 2008 and thereafter on the 30 September in each year. The first annual sum for management will be $100 (plus GST) per hectare (Indexed from 30 June 2008) for Plantation management, payable on 30 November 2008 and thereafter on the 30 September in each year.
Subsequent amounts for both rental and plantation management will be indexed in each year to take account of inflation.
It is a feature of this Project that a Grower is granted an option in respect of the second rotation by way of coppice rather than replants. The Grower is not required to make any decision nor to pay any money, until the time of the first Harvest. At that stage the Grower will have the opportunity to decide whether to participate in the second rotation.
The cost of such participation is fixed at the outset at $3,600 exclusive of GST per hectare indexed from June 2008. The annual management fee will be determined at the time of exercise of the option and rent charges will continue as under the initial rotation (i.e. $370 (plus GST) indexed per annum per hectare). It should be noted that it may be that at the time of the first harvest, expert forestry advice will be that a completely new planting rather than coppicing is to be preferred. W.A. Blue Gum Limited is the Responsible Entity and manager of the Project. The Project will continue for the period ending up to 26 years after the date of the last acceptance by the Project Manager of an Application from an intending Grower (so as to accommodate the second rotation option) unless otherwise determined by the Project Manager or the Growers.