Asia Plantation Capital Sees Growing Interest in Sustainable Plantations from Institutional Investors in London

SINGAPORE, Oct. 1, 2014 / PRNewswire — In London this week at Timber Invest Europe, Asia Plantation Capital – a company renowned for its expertise in the sustainable plantation sector – is showcasing its Agarwood plantation expertise.

As part of the Alternative Investment Forum arranged by Arena, this speciality conference for pension, sovereign fund and institutional investors, makes an annual review on both timber and agro investments. It has been widely acknowledged that these sectors have matured as asset classes, and now offer an ever increasing range of opportunities in different species and regions.

Family offices and pension funds have, traditionally, held Northern Hemisphere forestry assets for long-term security, diversity and even local country tax advantages. Today, improved asset security and attractive returns on niche timbers – such as Agarwood, sandalwood and teak – are helping to satisfy the growing demand for both natural and green assets. Institutional investors are increasing their percentage holdings of these assets, in order to meet that demand from clients.

Asia Plantation Capital has developed Agarwood plantations without any accrued debt, and on land where title is owned by them; all as part of their strategic plantation development plan. Their latest annual turnover figure is US$53.5 million, with US$600 million representing the combined value of plantations owned and assets under management.

Asia Plantation Capital is today, probably the largest and most successful specialist Agarwood plantation operator. Its operations also benefit from diversity in teak, bamboo and wider agroforestry, as well as inter-planted crops in several countries across Southeast Asia. Approaching forestry from a plantation management perspective has allowed Asia Plantation Capital the opportunity to provide consultancy services on its proven expertise, and offer international professional investors both medium and long-term options in sustainable plantation and agricultural projects.

Demand for Agarwood from Asia Plantation Capital is not restricted to external buyers in the Middle East, China and Western Europe. Asia Plantation Capital is one of the few vertically integrated plantation companies processing Agarwood into the rare Oud oil, along with wood chips, beads, incense and a myriad of other products, all derived organically from the trees. The value added chain is continued with a range of bespoke fragrances produced by its sister company Fragrance Du Bois, which has already been nominated for awards in the fragrance industry, and has rapidly evolved an almost cult status as a brand on the international market. Fragrance Du Bois’ motto: “Pure Oud, pure luxury,” perfectly complements its score principle of “luxury with a conscience”.

Agarwood prices have increased consistently since official records began in 1880, and at an average annual rate of 15% per annum since 1999. The growing demand consistently threatens to outstrip the available supply, and market opportunities are now being enhanced further, as commercial users and private buyers increasingly shun illegally logged Agarwood. Conscious choices are now being made to source trees grown on sustainable plantations – such as those owned and operated by Asia Plantation Capital.

Oud has now grown rapidly into a commodity, as well as being regarded as the highest value product among all the forestry species. The global demand for its use in fine fragrances, luxury goods and medicinal products is ever expanding, and it has been used in a number of traditional markets for thousands of years. In Asia and the Middle East for example, it plays a daily role in cultural and religious rites, and has become part of the fabric of society.

Asia Plantation Capital’s drive for added value and premium end products is a specific business strategy for all their sustainable timber and agroforestry crops. Bamboo – one of the world’s most sustainable species – is not only being used in traditional flooring and engineered construction board applications, but also in a variety of other ways. Seeking innovative solutions for higher returns, sustainable bamboo is now featuring in the creation of a new executive and international traveller luggage range, being launched in the last quarter of 2014. This is in addition to the growing use in the manufacture of high quality racing and road bikes (due to its strength, weight and flexibility), all being manufactured by Asia Plantation Capital and its subsidiaries.

By building additional demand for its sustainable timber and agroforestry crops, as well as the products derived therefrom, and by holding land title for the plantation areas used, Asia Plantation Capital offers a robust business option for institutional investors looking to create ‘greener’ client funds, and increase asset value consistently in the years ahead.

Asia Plantation Capital – quick facts:

  • US$ 600 million combined value of assets owned and under management
  • US$ 53.5 million turnover in the last financial year
  • US$ 100 million turnover forecast for current financial year
  • 2,000,000 Aquilaria trees on plantations for Agarwood.

Asia Plantation Capital: sustainable investment options for the current age.

Notes to Editors:

About Asia Plantation Capital

Asia Plantation Capital is an owner and operator of a diverse range of commercial plantation and farming businesses across the Asia-Pacific region, and globally, part of the Asia Plantation Capital Group of associated companies. Their focus is on multicultural and diverse plantation projects geared to the domestic and commercial demands of the countries in which they operate. Working closely with and supporting local communities is an underlying core principle of the APC business, providing social and cultural support, as well as investment, to move these communities away from deforestation and illegal logging activities, previously seen as a main source of income in some regions of Asia. Established officially in 2008, although operating privately since 2002, the group now has plantation and agricultural projects on four continents with operational projects at various stages in Thailand, Malaysia, China, Laos, India, Cambodia, Sri Lanka, Mozambique, The Gambia, North America and Europe.

Promoting the use of certified wood is the best way of preventing deforestation, protecting biodiversity and combatting poverty in the tropical rainforest regions. For the yachting sector, which strives for excellence and which is already involved in environmental efforts, this is also a way of ensuring that no wood from illegal logging is used.

About Fragrance Du Bois

Fragrance Du Bois is a niche luxury perfume house working closely with sustainable plantations in Asia, bringing exciting new 100% organic Oud oil based fragrances to exclusive markets worldwide. Sustainably sourcing the finest raw materials across the globe, working with French perfumers to create a full range of products, and also providing bespoke fragrance services, Fragrance Du Bois is personal luxury with a conscience. With exclusive fragrance lounges around the world, in Dubai, Hong Kong, Thailand, Malaysia and Singapore, Fragrance Du Bois creates only the finest experience in bespoke perfumery.

Fragrance Du Bois is known as Parfums Du Bois in France, and in non-French speaking markets, as Fragrance Du Bois.

About Timber Invest Europe Forum

Timber Invest Europe focuses on the alternative investment class for timber, and provides extensive information, research and contacts in recognition of the fact that Timber investment has matured as an asset class. New opportunities will be presented to investors, and new regions promising great returns will be discussed. A dedicated conference programme includes group discussions, as well as round-table and panel sessions. Investors taking part benefit from regional case studies, consumption trends, food security, as well as other key topics, which will provide support for the experienced and non-experienced investor in this asset class. Mr Adrian Whiteman, Forests Economics Team Leader at the FAO, will give this year’s keynote address.

Asia Plantation Capital Pte. Ltd. 50 Collyer Quay, #06-05 OUE Bayfront, Singapore 049321
Tel: +65 6222 3386 | Fax: +65 6221 2197 | Email: pr@asiaplantationcapital.com

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