Press Release – Results of the Indian Sandalwood Request for Tender

PRESS RELEASE – 19 August 2019
Smith Agri International are thrilled to formally release the results of the Indian Sandalwood
(Santalum album) Request for Tender on behalf of Huntley Management in their capacity as
Responsible Entity for the TFS 2003 Project Growers.
Smith Agri International was appointed to conduct a highly transparent global Request for Tender
underpinning the high quality of the Santalum album resource that is renowned for its high-quality oils
that exist within the heartwood of this sustainability grown plantation resource. The Kununurra,
Western Australia based sandalwood plantation estate managed by Quintis Forestry represents the
world’s largest sustainability grown plantation Indian Sandalwood estate, a fact that drew extensive
buyer interest from the active global sandalwood supply-chain (i.e. traders, processors, distributors
and end users). Bids were prevalent from international and domestic parties with offers placed across
all 6 individual Lots, those Lots made up of Pooled Logs, Forest Shavings and separately Pooled
Butts.
Given our 30 years of commercial forestry experience and in particular, our extensive supply-chain
logistical expertise, we were able to ensure all parties irrespective of their global location or proposed
end use, had the same opportunity as Australian based industry to confidently bid knowing they were
bidding on an ‘apples for apples’ basis. All bidders were provided the opportunity of assistance for
transport and export logistics via Darwin or Perth ports which was a major factor underpinning strong
international interest.
Irrespective of our full-service offering, competitive tension was clearly delivered through the open
Request for Tender process and we are pleased to confirm that the successful bidder was Alpha
Santanol, a fully owned and operated subsidiary of Mercer International. Their sophisticated bid
addressed all available Lots and featured a premium price for the entire offering, and whilst this
tender saw Australian based Alpha Santanol prevail, we are confident our transparent sale process
and result will further encourage even greater participation from international markets in future
tenders.
Smith Agri International looks forward to future releases of tenders globally for this highly valuable
and highly sought-after resource, wherein we can further build upon the exceptional engagement
delivered throughout the global sandalwood supply-chain for this recent tender. We have already
started re-engaging with underbidders towards the next Request for Tender which is expected for
public release later this year to correspond with the harvest of the TFS 2003 Project.
Smith Agri International Pty Ltd is a specialist Agribusiness Transactions & Advisory team, licenced throughout
Australia as a professional real estate organisation specialising in the Agricultural / Horticultural / Timberland
sectors on behalf of sophisticated institutional, asset management, industry, family offices and high-net-worth
individuals.
For further information; www.smithagriinternational.com.au. Contact; David Smith 0418 332 780