Macquarie Forestry Investment receives ratings approval
Macquarie Agricultural Funds Management has opened Macquarie Forestry Investment 2010, which is available until 30 June and has received strong ratings from Adviser Edge and AAG and preliminary endorsement from van Eyk, according to Macquarie.
The project received a 4.25 star rating from both independent research rating houses Adviser Edge and AAG, the highest ratings they have awarded to a forestry project in the market this year, Macquarie said.
Agribusiness managed investment schemes (MIS) have fallen further out of favour following the recent troubles with Rewards Group and FEA, with key ratings houses further narrowing their focus in the sector. Lonsec is currently rating just one scheme, while Zenith and van Eyk are rating just two.
Macquarie's projects are subject to rigorous due diligence and risk management processes, according to Macquarie Agricultural Funds Management chief executive Anthony Abraham.
"There have been some well publicised issues within the Australian agribusiness industry, particularly with regard to risk and the structure of investments, but as a result the overall quality of projects now being offered by the industry has greatly improved," he said.
"It is with this in mind that when we look at investment structures we also seek out additional options to minimise risk," he said.
Macquarie's forestry investment gives investors the opportunity to invest in the land as well as the trees, offering investors a further potential source of return at maturity and exposure to the relative stability of an investment in rural land, Abraham said.
Agribusiness continues to receive favourable tax treatment, with Macquarie's current investment offering eligible investors a 100 per cent tax deduction for the application price paid in relation to the tree project.
Despite the concerns over heavily geared MISs, Macquarie is offering approved investors the ability to borrow up to 100 per cent of the investment amount.
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