WHEATBELT REGION

Expression of Interest

CONTACT AGENT

6,717 hectares (16,599 acres)

AUSTRALIA'S PREMIER AUSTRALIAN SANDALWOOD ESTATE

On behalf of The Rohaytn Group, Smith Agri International are proud to present Australia’s Premier Australian Sandalwood Estate.

 

Key Features

The key features of the STS Sandalwood Estate (Properties sold separately or in one

aggregation) are as follows;

 

  • Title area in excess of 6,717 Ha’s (16,600 acres) including; 6 properties with 81 separate freehold titles.

  • Planted production area in excess of 4,930 Ha’s (12,200 acres).

  • Sorting, packing and storage facilities in place.

  • Experienced management team in place.

  • Active historic and new emerging global markets for Australian sandalwood.

  • Declining availability of naturally wild grown Australian

  • Sandalwood underpinning future value of the estate.

  • Complimentary ancillary land uses available (eg. sheep grazing, bees, cropping).

  • Double digit Internal Rate of Return.

  • Virtual Data Room available (includes; independent valuation reports, cashflows, data and mapping).

  • Highly desirable site parameters (flat to slightly undulating topography, good annual rainfall, high nutrient soil types).

  • Established and maturing age plantation asset (aged 7 to 13 years).

  • Low silvicultural risk.

  • Established infrastructure.

 

STS Sandalwood Estate Opportunity

The STS Sandalwood Estate presents a rare opportunity to acquire 6 properties over 81 separate freehold titles comprising a total of 6,716.56 hectares (16,596.62 acres) located within the highly desirable and highly productive Wheatbelt region of Western Australia.

 

The properties accommodate a total of 4,930.00 hectares (12,182.03 acres) of maturing planted Australian sandalwood aged between 7 and 13 years.

 

The key investment fundamentals within this acquisition opportunity, irrespective of your planned future use post commercial harvest, are present. They are land size with expansion capability, site productivity, reliable average rainfall along with good market access (domestic or export and within easy access of export ports.

 

Located within the Western Australian Wheatbelt, the region experiences a temperate climate with a distinctively dry and hot summer. Mean annual rainfall ranges from approx. 490 mm at Narrogin to 370 mm at Corrigin. The majority of rainfall is received in the months of May to August. The plantations are exposed to seasonal drought stress which is aligned with the naturally occurring native sandalwood species growing environment.

 

Scope of Current Enterprise

The properties represent an aggregation of well-established and managed sandalwood considered to be both growing in line with expectations and highly commercial. The dominant factor in determining the final ROI is time.

 

Silviculturally, Australian sandalwood can be harvested as thinnings between Years 10 and 14, although the quality of the wood at this time is lower due to the small amount of heartwood.

Irrespective of the timing, the produce does have existing current markets which assist the overall project returns, albeit the focus of such thinnings is in drawing elevated quality and returns from those trees remaining post-thinning. Plantation Australian sandalwood is generally harvested between the age of 15 to 25 years however, with age, additional returns will be gained through later harvest providing the Purchaser the opportunity to stage harvest to best optimise market returns.

 

Forward-use and alternative opportunities include:

  • Continued Australian sandalwood production and re-establishment post commercial harvest.

  • Continued and expanded sheep production (meat, wool and stud stock).

  • Cattle production.

  • Wheat and cereal crop production.

  • Mixed farming.

 

Contact us for a free copy of the Information Memorandum.

 

Non-binding offers by 19 June 2019.

 

David Smith Ph: +61 (0) 418 332 780       Email: david.smith@smithagriinternational.com.au

James Wyatt Ph: +61 (0) 415 284 264   Email: james.wyatt@smithagriinternational.com.au 

DAVID SMITH

DIRECTOR - SMITH AGRI INTERNATIONAL

+61 (0) 418 332 780

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