Key Selling Points

High-Yield Investment

Eco-Friendly

Excellent Capital Gain

We will take a unit of 1000 trees as our base entry level into Rio-Oranges for our Investors.

Investors are invited to purchase lots of orange trees in multiples of 1000 trees according to their circumstances.  The trees become the property of the Investor and the land on which they are planted is leased from Rio-Oranges.

Rio-Oranges will enter into a Management Agreement with the Investor for a period of 20 years.  The contract is renewable at the discretion of both parties at the expiry of the period and is transferable.

The price paid by the Investor includes all costs incurred by Rio-Oranges for the first three years:  purchase and planting of the trees and full maintenance costs of the trees for the first three years.  Thereafter, commencing in year 4, there will be an annual management charge for the maintenance of the trees and marketing of the crop.  This charge will deducted from the gross income obtained for the crop and at current prices (2008/9) the charge would be in the region of R$7500.00 (c.US$3500.00) per 1000 trees).

UNIT OF 1000 TREES.

The current price for a unit of 1000 trees is R$60,000 (c.US$27,000 – for current exchange rates see www.xe.com).   On behalf of the Investor Rio-Oranges will purchase and plant 1000 trees on a designated plot of land and will service and maintain the trees to a high standard during the critical first three years of growth.  This cost is included in the purchase price.  Following the 3-year growth period Rio-Oranges will sell the crop on behalf of the Investor, deduct the annual management charge from the gross proceeds and divide the net income on a 50/50 basis with the Investor.

Example:  (After year 3) the estimated gross income from sales of oranges from 1000 trees at 2008 prices is R$50,000 (c.US$22,500); less the annual management charge (R$7,500) leaves a net income of  R$42,500.  The investor receives 50% of this as his share: R$21,250.  An ROI of approximately one-third.

Investors can purchase trees in multiples of 1000 trees.

The lifespan of the orange grove is up to 20 years after which time the trees have to be replaced as their productivity decreases rapidly.  The purchase agreement permits the Investor to renew the contract for a further 20 years at no extra cost but the cost of replanting at that time must be borne by the Investor.

All costings and prices quoted were calculated using current exchange rates.

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