WA Sandalwood Plantations (WASP) has been appointed manager of failed investment scheme Rewards Group’s sandalwood assets.
The company said it had entered into a management agreement with the new owners of the land and forestry assets, which cover more than 5,800 hectares of sandalwood plantations.
The plantations are located in the Shires of Goomalling, Narrogin, Pingelly and Wagin.
“We have worked closely with the new owner during the due diligence process, and subsequent to settlement of the acquisition the parties formalised the management agreement,” WASP managing director Keith Drage said.
“We are excited about the varying aspects of market development that scale of this size brings.”
The appointment of WASP increases its total area of sandalwood under management to around 10,000 hectares.
WASP also announced today that it had established a 5 million tree, 2,200 hectare sandalwood plantation in the Central Wheatbelt, which it believes is the largest single plantation of its type in the world.
Dr Drage said global demand for sandalwood was on the increase as supplies were dwindling away, resulting in a bright outlook for the sector in Australia.