About

Greenplan operates a buoyant secondary market. This means that Greenplan investors can sell their units, if their circumstances change. The secondary market also gives Greenplan investors the opportunity to buy units in partly grown forests.

Forestry is inherently a long-term investment, with the greatest proportion of value accumulating during the latter stages of the forest cycle, when trees grow most of their volume.

Greenplan therefore advises that investors will benefit most by holding their investments for the long term, rather than the shorter term.

Units for sale - Units for sale are advertised in the Greenplan newsletter, as well as on this website.

Selling on the secondary market - If an investor decides to sell they contact the Greenplan office.  Information can be provided relating to recent sales on the Greenplan secondary market of similar units as an indication of sale price.  Greenplan arranges the necessary transfer documentation which must be completed by the vendor, and returned with the share certificate, before the unit is advertised. The unit is then listed in the next newsletter, and on the website.

The newsletter listing details the partnership, year of planting, and the sale price.

Once a buyer is found the necessary transfer formalities are completed, payment is made through Greenplan, and the vendor is paid out. Greenplan charges a 3% commission and the Securities Registrar charges a $100 transfer fee.

Units for sale in Greenplan partnerships 1-40 are sold subject to a pre-emptive right for partners in that partnership. This means that those partners have a 28 day period in which to apply for that unit. After that pre-emptive right period, if the unit hasn’t been sold to a partner in that particular partnership, it can be purchased by any other Greenplan investor.

There is no pre-emptive right restriction in partnerships 41 onwards.

Buying on the secondary market - Units are advertised for sale in the Greenplan newsletter, and on the website. Units can then be reserved, by contacting Greenplan.

Transfer documents are then sent to the prospective purchaser for signing. They are then returned to Greenplan along with payment for the full purchase price.

The Securities Registrar issues and sends a new share certificate to the purchaser.

A few points to note

  • The sale price for secondary market sales is set by the vendor, normally in consultation with Greenplan. Greenplan is able to provide information about recent sales of similar units, and other relevant information.
  • Ultimately the value of units that sell on the secondary market will be determined by supply and demand. Of course units that are more expensive than anyone is prepared to pay will not sell. 
  • The full sale price must be paid upon purchase. There are no payment terms available for secondary market purchases. Prices are not negotiable.
  • A portion of the tax deductibility of the investment will have been used. This increases the cost of secondary market units relative to new units. For example five years worth of deductible expenses in a five year old forest will not be available. This will be equivalent to around $2500 of deductible expenses.
  • There is a preemptive right of purchase for partners in the partnership in which units are offered for sale in partnerships 1 – 40. This means that partners in those partnerships have a 28 day right of purchase. Only after 28 days can units be sold to Greenplan investors not in that partnership. There is no preemptive right in later partnerships.
  • Greenplan’s advice to investors is that the investment should be seen as a long term one. The longer the investment is held the better the total return, and the rate of return, is likely to be. The best returns are likely where the investment is held for the life of the forest. Investors should at least plan to hold units for the first 12 to 15 years of the investment.