Greenplan operates a Secondary Market. This means that Greenplan investors can offer to sell their units, if their circumstances change. The Secondary Market also gives Greenplan investors the opportunity to offer to buy units in partly grown forests.  The ability to buy or sell units is not guaranteed and depends on the availability of a willing seller or buyer.

Greenplan’s role in operating the Secondary Market is solely to provide a facility for investors to buy and sell units in Greenplan partnerships. The information contained in this website or any Greenplan newsletter about the Secondary Market and the Unit Transfer Registry is for general information purposes only. It is not legal or financial advice and does not take into account your individual circumstances or financial situation. Greenplan recommends you seek assistance from a financial adviser if you require financial advice.

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. 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 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 in partnerships 40-63.

Buying on the Secondary Market

Units can be advertised 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. 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.  
  • 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 pre-emptive right of purchase for partners in the partnership in which units are offered for sale in partnerships 1–39. 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 pre-emptive right in partnerships 40-63.