Not only does Santal Valley have some of the best sandalwood trees on the planet, but this iconic property also holds incredible untapped potential for value-adding down the line. The sustainable foundations we’ve established and close relationships we’ve cultivated, both locally and abroad, only serve to increase the long-term profitability of this extraordinary plantation.
When you invest in Santal Valley, the only limits are your imagination.
According to the Global Sandalwood Market Research Report, the global sandalwood market was estimated at $22.5 billion USD in 2020. This same report predicts that the value will continue to increase over the next five years, reaching $26.8 billion USD by the end of 2026.
Santal Valley boasts over 10,000 planted sandalwood trees expected to reach maturity in three to five years. In three to five years, some of these trees can be expected to weigh upwards of 300kg each, with 15-20% heartwood. We also have an additional 5,000 younger trees of varying ages, which means our valuable harvests can continue as these new trees mature. Continued planting is a daily fixture of plantation life.
Once mature, our sandalwood trees are expected to pull in about $1,800 USD in profit. And with a lifecycle cost of only $200 USD per tree, the potential return is substantial.
The value of any given sandalwood tree depends on two main factors: the weight of the tree’s heartwood and the concentration/composition of its oil. For a small tree of about 150kg, 20% is valued at $50 per kg, about 10% is valued at $10 per kg, and the remainder is valued at $3 per kg. An even better performing tree will weigh closer to 250kg; of that 250kg, 30% is valued at $50 per kg, 10% is valued at $10 per kg, and the remainder is valued at $3 per kg.
While the sandalwood trees are the stars of the show, Santal Valley’s other assets and infrastructure improvements continue to add value to the property.
Santal Valley has high access to the main road, which is tar sealed with fair drainage – an important consideration for Vanuatu’s rainy season. From the main road, access roads lead to the main agricultural buildings; these access roads have a well-formed crushed coral base and allow delivery trucks to move to and from the property with ease. Once inside the property, single-lane tracks provide access to different areas of the plantation. The surfaces of these roads are currently either crushed coral or grass, and onsite quarry access makes potential future road improvements easily attainable.
Since our company acquired the plantation in 2013, we’ve improved the already iconic property by adding a number of key buildings, including accommodations, sheds, water closets, workspaces, and a laboratory. In addition to generator electricity, the property is also equipped with solar panels that offer a sustainable and cost-effective power source.
Savvy investors understand the importance of relationships, especially when it comes to running a business. At Santal Valley, we’ve nurtured connections both locally in Vanuatu and abroad.
Santal Valley has cultivated a close working relationship with the local Vanuatu government, most notably with the Department of Forests (DOF), which oversees forestry interests and industries throughout the archipelago nation.
Unlike much of the land in Vanuatu, this land has been properly instrumented. Furthermore, because the land comes to us following a bank liquidation, investors can have the peace of mind that there are no skeletons in the closet here. We have a clean, by-the-book land lease that carries through the next 60 years, which translates to at least three full harvests of sandalwood even before the lease comes to term.
Our connections abroad enable us to remain at the forefront of the industry. We collaborate with scientific research organisations, such as the Australian Centre for International Agricultural Research, in order to preserve the genome of our sandalwood trees. We also work closely with Western Australia’s SS Champion, one of the largest sandalwood exporters in the world.
With its thousands of trees, solid infrastructure, and strong relationships, Santal Valley already stands apart as an opportunity for considerable return on investment, even if no changes are made. But for the innovative investor, there are even more potential opportunities – with an even higher ROI – waiting on the horizon.
Internationally, this property has the potential to set up ISO standards for sandalwood cultivation and trade. Establishing international standards not only boosts international recognition, but it also serves to reassure consumers and buyers worldwide that sandalwood products are safe, reliable, and of high quality. Even locally, our collaborative relationships with local government bodies grant us opportunities to influence the formulation and drafting of Vanuatu’s own sandalwood policies.
There are also opportunities for downstream value-adding. With the majority of Vanuatu’s sandalwood exports being sold unprocessed – as clean heartwood – the potential for Santal Valley to conduct on-site distillation of sandalwood oil and pursue higher prices of the product is considerable. Such on-site oil distillation has the potential to continue building brand recognition for Vanuatu sandalwood, as well as to create jobs and build skills in the local economy, which in turn attracts even more favourable industry support.
And with the plantation’s iconic scenery, Santal Valley holds incredible potential as an agritourism destination. As more and more travellers seek out idyllic landscapes, family-friendly environments, and health-oriented leisure, the international agritourism market continues to grow. Our peaceful and bucolic Garden of Eden is sure to wow visitors from any generation and every walk of life.
Santal Valley’s vast opportunities for business expansion and development – combined with our dedication to sustainability – strengthen and extend the long-term profitability potential of your investment.
The possibilities are endless.
Come grow with us.