Powton Land Holdings Limited

Powton Land Holdings

Powton Land Holdings Limited (“PLH”) owns the property known as “Kiri Park” at Regan’s Ford, Western Australia. Kiri Park is located approximately 150 kilometres north of Perth and is used for the purpose of establishing and operating commercial Paulownia plantations.

Kiri Park has the capacity to grow up to approximately 230,000 Paulownia trees and is the land on which the Kiri Park Projects have been established.

The Kiri Park property is ideally suited for Paulownia plantations, largely due to its warm and sunny summer days, a sufficient supply of water, and sandy-loam soil. Kiri Park is appropriately cleared, pastured, watered and fenced and the Paulownia timber plantations are fully irrigated, and the EFF Group has committed significant capital to improving the irrigation systems and installing a settlement dam on the property, to further strengthen the water security of the plantations.

PLH has three primary business considerations:
   • Grower
   • Landlord of Kiri Park
   • Financier

PLH has a majority interest in a plantation of 40,000 Paulownia trees, that are located on the Kiri Park property. PLH may receive future revenues from the sale of the timber generated from the 40,000 trees. The 40,000 trees in the equivalent of 400 woodlots in the Kiri Park Projects.

At the end of the Kiri Park Projects, PLH will own the Paulownia tree stumps, that remain on the Property after harvesting the timber and the plant and equipment servicing those trees. Paulownia trees have the ability to regrow from the harvested stump for several future harvests. Any regrowth of the Paulownia timber will be then owned by PLH, which may provide a future source of income. This includes the 40,000 trees owned by the Company and all regrowth of the trees left on the property after expiry of the relevant Kiri Park Project. There are currently approximately 110,000 trees in the existing Kiri Park Projects, with a maximum of an additional 70,000 under the Kiri Park Project 2004/2005 and future projects.


Landlord - of Kiri Park
The land used for the Kiri Park Projects is leased either directly or via a sub-lease to Growers in the Kiri Park Projects. Three Managed Investment Schemes make up the Kiri Park Projects, with each project being set for a 10 years duration.

In consideration for leasing the Property, PLH receives an agreed amount of rent per annum.


PLH has issued Debenture Stock to raise finance that is then lent to Growers who wish to invest in the Kiri Park Projects, or other Managed Investment Schemes that are established for the purpose of growing and harvesting Paulownia trees at Kiri Park.

PLH makes these loans on normal commercial terms based on personal loan rates and terms and conditions. PLH receives interest income from Growers, and the loan is secured against that Grower's identifiable Woodlot investment.