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TFS Sandalwood 2016 Project


The TFS Indian Sandalwood Project 2016 – Retail Investment Offer (TFS 2016) is the company’s eighteenth annual Indian sandalwood project.

Experienced Managers

TFS has an experienced team of professional foresters, agronomists, research officers and agricultural scientists who manage the plantations. An ongoing program of monitoring and research is used to maintain good growth and survival rates.

The TFS parent company, TFS Corporation Ltd, listed on the Australian Securities Exchange in December 2004 (ASX Code: TFC) and is now an ASX 300 company.

In July 2008 TFS Corporation acquired Mount Romance Australia Pty Ltd, the leading global distiller of Western Australian sandalwood oil and a producer of sandalwood consumer products.

In June 2015 TFS Corporation announced the acquisition of its US-based pharmaceutical partners ViroXis Corporation and Santalis Pharmaceuticals which will extend TFS’s vertically integrated strategy. ViroXis and Santalis are well advanced in the formulation, testing and commercialisation of various dermatology products containing TFS pharmaceutical grade Indian sandalwood oil, including the Benzac® products which were successfully launched by Nestle-owned Galderma in December 2014.

TFS is committed to exploring opportunities in an ever-expanding market place with demand for fragrances, religious products and pharmaceuticals made using Indian sandalwood and its oil forecast to increase.

Dedicated To Sandalwood

TFS is a specialist Indian sandalwood plantation manager and is committed to the long term development of an Australian grown Indian sandalwood industry.

TFS first planted Indian sandalwood in Kununurra, Western Australia in 1999 and has since planted over 10,500 hectares of commercial Indian sandalwood plantations on behalf of over 3,500 individual growers and institutional investors. That equates to 4.5 million Indian sandalwood trees. By mid-2016 approximately 1,500 hectares of additional Indian sandalwood will have been planted on behalf of Growers, institutional investors and companies associated with TFS.

Current Quintis (formerly TFS) Projects
See Our Current Projects

TFS Sandalwood 2015 Project

Cash Rebate 4.00% 
Closing Date CLOSED
Minimum Investment $7,250 (ex GST)
Application Cost
per Lot (ex GST)
$7,250 (up to 11)
$6,950 (12 or more)
Term of Project Approx. 15-17 years
Finance available Yes
ATO Product Ruling 2016/1
Product Disclosure Statement
Arwon Finance Summary
Adviser Edge Research
Loan Application (P&I Loan)
Investment Calculator

TFS owns approximately a third of plantations under management, further aligning its interests with those of its investor partners.

TFS completed the first commercial harvest of its Indian sandalwood plantations in 2014 and its second harvest in 2015. The third harvest is scheduled to commence by mid-2016.

Sustainable Development

 TFS is committed to sustainable development to preserve longterm benefits for the community, environment and TFS.

TFS believes that it can be part of a better world, starting with the communities in which we work and operate. TFS supports local and indigenous communities through the sponsorship of cultural and educational programs and the creation of local employment opportunities.

The unique climate of Australia’s tropical north provides an ideal location for the growth of Indian sandalwood and TFS is committed to preserving this unique region and minimising the company’s environmental footprint.

Environmentally Responsible

TFS believes in thinking of tomorrow by adopting a proactive strategy to environmental management.

The TFS Group has achieved accreditation for ISO 9001:2008 (Quality), ISO 14001:2004 (Environment) and AS/NZS 4801:2001 (Occupational Health and Safety) and continually works towards environmental and ethical best practice.

On a global scale, TFS is ensuring the longevity of this much sought after species.

High Demand & Increasing Price

Sandalwood features in a wide range of products around the globe including perfumes, cosmetics and toiletries, traditional medicines, medicinal skin care products, pharmaceuticals, carvings, fashion, elite furnishings, incense, religious ceremonies and religious artefacts.

The Indian species of sandalwood (Santalum album) commands the highest price at auction due to its superior oil yields and long-term market acceptance. The auction price of wild mature Indian sandalwood heartwood in India has increased from $30,900 per tonne in 2000 to $212,409 per tonne in 2015*. This equates to an annually compounding price growth over the last 15 years of approximately 14%.

Depleted Supplies

Due to high demand for the wood and oil of the Indian sandalwood tree and the depleted supplies from wild harvesting in India, TFS grown Indian sandalwood is the world’s largest sustainable source of Indian sandalwood.

Australia has the only known largescale commercial plantations of Indian sandalwood in the world, with TFS being the largest.

Optimal Growing Conditions

The tropical north of Australia displays ideal conditions for the healthy growth of Indian sandalwood.

The intellectual property built up by TFS over 18 years of plantation experience is second to none. Supporting this is over 20 years of government research into Indian sandalwood silviculture.

*It should be noted that:

100% Tax Effective Product Ruling

Growers who are registered for GST may also claim input tax credits for GST paid in relation to TFS 2016. By becoming a Grower, you are deemed to be in business and therefore entitled to register for GST.

Growers should be aware that Product Ruling PR2016/1 is based on the precise arrangements identified in the Ruling. If the arrangement described in the Ruling is materially different from the arrangements actually carried out, the Ruling has no binding effect on the Commissioner and will be withdrawn or modified. The Product Ruling is only a ruling on the application of taxation law and is in no way expressly or impliedly a guarantee or endorsement of the commercial viability of the project, of the soundness or otherwise of the project as an investment, or the reasonableness or commerciality of any fees charged in connection with the project. It is recommended that Growers read the Ruling in its entirety and seek their own professional taxation advice concerning an investment in TFS 2016.

Discount For Additional Lots

TFS 2016 has a minimum investment of one twelfth of a hectare (1/12th Ha) with volume discounts for 12 or more lots

Flexible Finance Options

Flexible product options with readily available finance through Arwon Finance Pty Ltd (‘Arwon Finance’), a wholly owned subsidiary of TFS Corporation Ltd, via either a 12 Month Interest Free Loan or a Principal and Interest Loan.

Ability To Defer Ongoing Fees

Following the initial Establishment Fee, Upfront Annual Fee and Upfront Rent, a Grower may elect not to pay the Annual Fees and Rent via an annual election (see the costs and options section for more details).

Grower Protection

To maximise grower protection, TFS has introduced additional safeguards to protect growers’ interests. This includes TFS depositing 50% of the Establishment Fee and the entire Upfront Annual Fee & Upfront Rent into trust accounts maintained by an Independent Custodian. These funds shall be released to the Responsible Entity as set out in the PDS.

Fees Per Sandalwood Lot of 1/12th Hectare

Additional fees and costs may apply. Please refer to the TFS 2016 Product Disclosure Statement for a complete list and explanation of project fees and costs.

Note: Fees are listed in AUD, and are GST inclusive.



Number of Sandalwood Lots applied for by Applicant Fee per Lot Cost for 1 Hectare (12 Sandalwood Lots)
1 - 11 lots $7,975  
12 or more lots $7,645 $91,740

Fee Fee per Lot Cost for 1 Hectare (12 Sandalwood Lots)
Upfront Annual Fee $435 $5,220
Upfront Rent $145 $1,740

Upon the payment of the Establishment Fee, Growers will acquire an interest in 80% of the Gross Proceeds of Sale (less any applicable deductions as described in this PDS and set out in the Lease and Management Agreement).

*Held in Custodian Account


Annual Investment Option

Under the Annual Investment Option, Growers can elect to pay the ongoing Annual Fee and Rent on an annual basis.

Fee Fee per Lot
Annual Fee $435
Rent $145

The Annual Fee & Rent will increase each year at a fixed rate of 3% per annum throughout the Term.

For each year in which a Grower elects to pay the Annual Fee and Rent, the Grower will acquire an additional percentage interest in the Gross Proceeds of Sale in accordance with the following table:

Year of Election Additional interest in Gross Proceeds of Sale
Year 1-2 3% (plus GST)
Year 3-4 2% (plus GST)
Year 5-14 1% (plus GST)

Annual Deferred Investment Option

After paying the Establishment Fee and acquiring an interest in 80% of the Gross Proceeds of Sale (less any applicable deductions), Growers can elect, on an annual basis, not to pay the ongoing Annual Fee and Rent.

For each year in which a Grower elects to defer the payment of the Annual Fee and Rent, the obligation to pay the Annual Fee and Rent will be deemed to have been satisfied and the Grower will not be entitled to acquire the additional interest in the Gross Proceeds of Sale corresponding to that year.