TFS Corporation launched its inaugural native Australian Sandalwood Project for retail investors and appointed WA Sandalwood Plantations Pty Ltd (WASP) to be its plantation contractor.

The project capacity is expected to be 1,000 hectares with subscriptions available in 0.25 hectares woodlots. Establishment fee is estimated to be $3,900 per woodlot.

TFS Corporation said minimum subscription of 250 hectares is required for the Sandalwood Project to proceed. Plantations will be located in the Wheatbelt region of Western Australia.

In a statement, TFS clarified that it is not making any investment in WASP, nor in any of WASP's Australian sandalwood plantations. TFS has executed an agreement with WASP to be the plantation contractor for the Project, under the supervision of TFS.

It was reported in Western Australian newspaper that TFS is making an investment in WASP.

Under the agreement, TFS will raise up to $16 million to fund land acquisition, establishment and management of a new Australian sandalwood plantation to be project managed by WASP.

TFS, a specialist Indian sandalwood (Album) plantation owner and manager, said the establishment of Australian sandalwood plantation is a natural extension of TFS' core business and operations as a vertically integrated sandalwood products company.

Australian sandalwood is complimentary to Indian sandalwood as they serve distinct product segments. Indian sandalwood is used in high-end cosmetics and luxury fragrances, as well as having widespread religious and cultural applications in India and Asia. Australian sandalwood has typically been used for incense in China, Taiwan and south east Asia and also has usage in fragrances and cosmetics.