HVT Land Trust - Profile and latest IMPORTANT information

HVT Land Trust - PROFILE

Cremorne Capital Ltd established the HVT Land Trust (Trust) to acquire the land on which the plantations in the Great Southern High Value Timber 2007 Project and the Great Southern High Value Timber 2008 Project (GSHVT Projects) were situated. The land was purchased from the liquidator of Great Southern HVT Holdings Pty Ltd.

Cremorne Capital obtained unitholder approval to merge the assets of the Trust with those of the GSHVT Projects, so that the Scheme had combined ownership and management of all land and trees on the subject land – with that land limited to the Northern Territory land on which the Mahogany trees are located - to realise the following benefits:

• The Scheme owning and managing the subject land and all trees situated thereon. As the Scheme owns the land Cremorne Capital may, subject to available funds, explore in the future alternate uses for parts of the land not suitable for plantations for the benefit of members. Such uses may include production of hay and ownership of cattle;

• Consolidation of current administrative and other costs, currently being incurred across 3 managed investment schemes (the GSHVT Projects, together with the Trust), to a single managed investment scheme;

• Consolidating the Fund's assets to focus on management of African Mahogany plantations in the Northern Territory, which plantations are easier to manage as they are located on one property;

• The benefit of potential income and capital returns, thinning of the Trees, harvesting of the Trees and sale of the Trust's properties following harvest as well as income from hay and cattle..  

Following unitholder approval the GSHVT Projects have been deregistered.   

Valuation summary

As part of the Constitution of the Cremorne Capital HVT Scheme (Scheme), and following the undertaking given to unit holders, Cremorne Capital has obtained a valuation of the Scheme as at 30 June 2021.

As unit holders are aware, the Scheme property comprises trees and the land on which the trees grow, located on one block at Douglas Daly in the Northern Territory (Land).   As unit holders are also aware, not all of the Land has been planted, and Cremorne Capital has been examining alternate uses of the Land. 

In valuing the Scheme therefore, Cremorne has taken into account the value of the Land and trees on it, and the value of alternate uses of the land, less liabilities.   

Cremorne has engaged an independent valuer to value the Land and trees, and has relied on that valuation in providing this summary.

A summary of the valuation is as follows:

Assets

Land and trees        $8.24m

Cash and Cash Equivalents $0.51M

Liabilities

Westpac facility       $0.49m

Creditors                 $0.27m

Total                         $0.76m

Scheme value        $7.99m

Disclaimer

This summary is prepared only for unit holders of the Scheme.  The purpose of this summary is to give unit holders an estimate of the value of Scheme assets.  The estimates are based primarily on advice from third parties, and contain various assumptions some or all of which may not occur.  The valuation is therefore an estimate only and Cremorne does not warrant or imply in any way that unit holders will obtain a specific value for their units should they be sold.   There are a number of factors that will influence the price of units and as units are not listed on an exchange they are illiquid and unit holders may not be able to sell them.

Forfeiture of units

Under the HVT Land Scheme Constitution, where members do not pay annual contributions and are given appropriate notice of failure to pay, their units are liable to be forfeited. 

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