TFS receives plantation investment

A UK-based institution has signed an agreement with TFS Corporation to invest in 208 hectares of new Indian sandalwood plantations in the Northern Territory, for an undisclosed sum.

The investment by the Church Commissioners for England will bring TFS’s managed estate to 10,791ha.

It represents the institution’s fourth investment in TFS’s plantations.

“This sale gives us a very solid start to the financial year for our institutional plantation sales program and demonstrates the strong demand pipeline for our plantations,” TFS chief executive Frank Wilson said.

“We are very pleased that the Commissioners have shown the confidence both in TFS and the sandalwood market to make another significant investment in our new plantations in the NT.”

The sale is conditional on the completion of due diligence and approval by the Foreign Investment Review Board.

Yesterday, TFS reported a 37 per cent rise in net profit to $113 million for the 2015 financial year, with cash revenue 12 per cent higher to $151.2 million (mainly from the sale of new plantations to investors and from plantation managed services), and non-cash revenue up 116 per cent to $166.8 million.

Shares in TFS were 1.4 per cent lower to $1.51 each at 11:15am.