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 transfer fee.
Units for sale in Greenplan partnerships 1-39 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 40 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