Nice article- perhaps TFS will pick up some of Rewards Aussie SW...

Nice article- perhaps TFS will pick up some of Rewards Aussie SW plantations!

TFS announces investment deal

On the same day that the Rewards group held its first creditors meeting to sort through the fallout of its failure another farming company was popping the champagne corks after announcing a major investment deal.

TFS or Tropical Forestry Services has the largest plantation of Indian sandalwood in the Ord Valley, making it one of the world's largest growers of Indian sandalwood.

Yesterday they announced a confidential Investment Management Agreement with a US based institutional investor that could potentially be worth $120 million over 6 years.

Quentin Megson is the Chief Financial Officer for TFS he says the announcement is good news given the turbulent business conditions.

"In essence the US investor is investing into our sandalwood plantations in Kununurra."

"For TFS it continues to show our diversification somewhat away from our managed investment scheme program and really confirms the underlying value of our sandalwood plantations and our forestry practises."

Quentin Megson believes this new investment deal will allow TFS to be less reliant on their MIS and will spread their investment risk.

He says the diversification of investment will help the company avoid the fate of other MIS schemes such as Great Southern, Timbercorp and Rewards Group.

"We believe the downfall of a lot of other companies has been through issues with the business model and debt and we have now a broader base of investments available."

http://www.abc.net.au/rural/regions/content/201005/2910759.htm

SD