This is for the Japanese and Chinese and other foreign...

This is for the Japanese and Chinese and other foreign investment companies to understand what AF06 means in Aussie jargon and a copy of the front report of a 36 page document that has an air of whatever from the previous,it is also good to see that GSMFSL is able to function again. But have a look at what is back on the books,and they expect advisers to go for this?
Isuggest that they read the Australian newspaper dated 02/06/09 and see what AAG advisers think now

Beckmont Pty Ltd trading as Australian Agribusiness Group A.B.N 50 056 592 708
Level 7, 99 Queen St, Melbourne, 3000 Australia ph +61 3 9602 6500 fax +61 3 9642 8824 email [email protected] web www.ausagrigroup.com.au
This document does not constitute advice and is issued under the terms and conditions of the disclaimer herein.
AAG holds an Australian Financial Services Licence (Licence no 244307)
Copyright © Australian Agribusiness Group (AAG) 2008
Overall Summary Rating – ��������
Part A – Corporate Goverance Review – ��������¾
Part B – Track Record Review – ������¾
Part C – Project Review – ��������
This report is valid until November 2008
Application Cost per Unit (ex GST) $3,350 (includes investment in Tree
Project and Land Trust)
Min Number of Interests per Investor 1
Asset Ownership Units in Land Trust (application fee of
$500 per unit – included above)
Size of Unit 0.25 ha or 0.33 ha when Woodlot is
located in Tiwi Islands
Management Fees (ex GST) 2.5% of Net Proceeds of Sale
Lease Fees (ex GST) 7.5% of Net Proceeds of Sale
Finance available Yes
AAG Est. Cash Returns (IRR after tax)
• Tree Project (46.5%), Land Trust (15%)
• Tree Project and Land Trust (46.5%)
7.2% (2.9% – 10.2%)*
6.6% (2.3% – 9.7%)*
Project duration
• Tree Project
• Land Trust
13 years
15 years
Commissions 5% of application monies, plus 0.65%
trail commission for 10 years
Project Size and Raising 25,400 hectares, $285 million
Close Date for Investment At the discretion of the RE
Product ruling for Tree Project PR 2008/39
* =Based on an investment in Tree Project and Land Trust
The overall rating given to Great Southern Limited (Great Southern) and the Great Southern 2008 Future Forestry Investment, which is outlined above, is based upon the ratings
given for each of the individual parts (Part A, B & C) as outlined below. Investors should seek their own advice and read the project PDS, Part A Corporate Governance Review,
Part B Track Record Review and Part C Project Review including the disclaimers therein before making an investment decision. If a supplementary is issued or a material
change impacts on the Project, AAG reserve the right to withdraw or alter this report and/or ratings.
Ratings are awarded out of a maximum of five stars. A rating may include quarter
stars. AAG and William Buck have reviewed the answers to the self-assessment
completed by the Directors and management of Great Southern in November and
October 2007 respectively. AAG and William Buck have also assessed the
reasonableness of the responses made by the Directors and management in awarding
them the underlying ratings. The ratings should not be taken in isolation and readers
must refer to the separate reports and the terms, conditions and disclaimer contained
therein.
PART A William Buck Corporate Governance Review –
+ The Board has a majority of independent directors, including an independent
Chairman and a good mix of skills relevant to the business.
+ The attitude of the company to governance is receptive and proactive.
+ GSL has invested more than most in its compliance function and resources
which aids in investor protection.
+ Management and Board reporting is sophisticated.
+ External experts are used to independently assess operational performance.
- GSL does not use an external Custodian to manage the receipt and payment of
Investor Funds in most cases.
PART B AAG Track Record Review –
+ Great Southern is a highly experienced investment manager in the agribusiness
sector.
+ Great Southern is a heavily resourced company with a strong balance sheet.
+ Great Southern spreads its risk loading through its diversified investments –
plantation forestry, olives, vineyards, beef cattle and almonds.
□ It is too early to make judgement on the performance of Great Southern’s
almond and beef cattle projects to date.
– Great Southern’s earlier timber projects have underperformed, as have its wine
grape and olive projects.
PART C AAG Project Review –
+ Due to the inclusion of land with a tree investment, the combined offering is very
robust to the major variables (timber yield/price and land price).
□ The returns for the combined offering are reasonable for a tree and land
investment.
□ Although the initial fees for the Project are considered high, the deferred fees
payable by investors are considered relatively low.
– Any extended period of low rainfall, especially in the establishment phase of the
plantations, is a major risk to investors. The failure of land price to increase in
value during the life of the Project is a risk to Land Trust investors.
– The scale of the offering may also negatively impact on land quality and
transport costs.
OVERALL SUMMARY RATING
Underlying Comments
��������
2007/08
AUSTRALIAN AGRIBUSINESS GROUP
GREAT SOUTHERN 2008 FUTURE FORESTRY INVESTMENT
Retail Investment Research – April 2008
AAG and William Buck Ratings
The Project enables investors to participate in the business of growing hardwood
timber in plantations located in various regions within Australia, and owning the
underlying land. Our rating is only based on an investment in an equal number of
units in both the Land Trust and Tree Project. The timber produced from the
Project will be used in the production of woodchip for use in paper manufacturing.
Project Summary
Project Details