WA Sandalwood Plantations takes over sandalwood assets

WA Sandalwood Plantations (WASP) has been appointed manager of the sandalwood assets of failed managed investment scheme operator Rewards Group.

WASP said it has entered into an agreement with the new owners to manage the land and forestry assets, which include around 5,800 hectares of established sandalwood plantations.

The plantations are located within the Shires of Goomalling, Narrogin, Pingelly and Wagin in Western Australia, which are all located within around three hours drive to Perth.

Money Management understands that the assets have been purchased by US-based investment management firm GMO Renewable Resources from receivers McGrathNicol. 

WASP managing director Keith Drage said WASP had worked closely with the new owner during the due diligence process. "We are excited about the varying aspects of market development that scale of this size brings," he said in a statement.

The appointment increases WASP's total area of established sandalwood under management to some 10,000 hectares, the group stated.

"The variance in age class, from new plantings to 10-year-old sandalwood across the estates WASP manages, will allow for a sustainable supply of plantation-grown sandalwood into the marketplace from 2015 onward. The mixed-age class also delivers a substantial annual nut harvest, the market for which is developing rapidly," Drage said.