sandalwood enterprise to take world stage

Interesting article, link at bottom.

Note the quote from Megson: "In 1000 hectare plantations to be developed this year, 500 hectares WILL be financed by MIS THE REST BY Beyond Carbon....

Obviously in the know with such a definitive statement!

BEYOND MIS FINANCING

Managed Investment Schemes (MIS) have been a popular investment vehicle in Australia for some time. The Australian Federal Government, mindful of the long periods without returns in forestry and other agricultural endeavours, and wanting to ensure sustainable timber and carbon sinks, has made investing in MIS 100 percent tax deductable.

As a result of the creation of this unusual and attractive asset class there was a flowering of options available to investors from tea tree to pine, from cattle to crayfish.

The market in MIS took a battering when two of the largest MIS schemes Great Southern and Timbercorp collapsed in 2009. Megsons reading of the situation is that in those cases the investment prospectus was the primary business, rather than the agricultural pursuit.

Laden with huge debt levels those companies had a very public demise. In contrast TFS was always set up as a producer from soil to oil, with MIS investment being merely the financing vehicle. With debt levels as low as 14 percent, the Global Crisis was manageable for the company.

Today the financing of future plantations is split between MIS and Beyond Carbon, a scheme for overseas investors whose prospectuses or strategy require some agricultural or sustainable component. In 1000 hectare plantations to be developed this year, 500 hectares will be financed by MIS the rest by Beyond Carbon.

SD

http://www.manufacturingdigital.com/company-reports/tfs-corporation-ltd-sandalwood-enterprise-take-world-stage