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AMAYA FARMS: MANAGED TREE FARM INVESTMENT OPPORTUNITIES

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Presentation on theme: "AMAYA FARMS: MANAGED TREE FARM INVESTMENT OPPORTUNITIES"— Presentation transcript:

1 AMAYA FARMS: MANAGED TREE FARM INVESTMENT OPPORTUNITIES
Synergy Partners Uganda

2 About Synergy Partners
Synergy Partners (SPU) is a real estate development company headquartered at AHA Towers, 4th Floor, Plot 4 Lourdel road, Nakasero. In addition, the firm has a show house at Birungi Estate, Kira Buwaate. Our niche in the property development space is sites and services. We design and develop residential housing estates, where our clients purchase plots in gated communities, and we provide them construction support services when they are ready to build. We institute housing associations where members contribute minimal fees to preserve/maintain the housing estates. Residential estate portfolio: Kira (Birungi Estate) Gayaza (Naava & Sanyu Estates) Matugga (Malaika Estate) Ziru – Entebbe Road (Amani Lake View Estate) Since 2015, SPU has innovated a managed tree farm product - Amaya Farms

3 Synergy Partners Uganda

4 A case to reforest Uganda
Uganda is a fertile, beautiful country aptly known as the “Pearl of Africa.” One would think it is adequately forested. However, upon deeper investigation, it is apparent that that is not entirely the case. Deforestation remains a major concern, with 80% of Uganda’s 35 million population presently living in rural areas and greatly dependant (approximately 90%) on fuel wood for their energy needs. The country’s population growth is currently estimated at 3.4% per annum which is expected to double within the next 20 years. Human encroachment on forests is one of Uganda’s main environmental concerns, extending to even the Protected Areas (Central Forest Reserves and National Parks). Total forestry cover in Uganda is currently approximately 11% of the entire landholding. As a comparable, in 1990, forests covered 20.4 percent of the land area of the country. From 2010 to 2014, a total of 39m, 41m, 42m and 44m tones of round wood were produced in Uganda. This is an indicator of the growing need for wood and timber in the country. The aforementioned decline in Uganda’s forestry is correlated with the increased cultivation and sale of round wood in the country indicating the growing demand for timber with limited or dwindling supplies. Synergy Partners Uganda

5 Synergy Partners Uganda
Amaya Farms Located in Nakitoma, Nakasongola; 170 km from Kampala – 2.5 hours drive Key tourist attractions: Zziwa Rhino Sanctuary, Nakasongola Hills, UPDF Airforce base and Heavy Artillery Unit 4 square miles project (Approximately 2,700 acres); 890 acres developed to date Most feasible trees to grow are Pine, Oranges, Mangoes. Synergy Partners Uganda

6 Synergy Partners as a partner
After purchasing an agricultural plot, Synergy Partners undertakes the following activities for reasonable fees: land preparation/bush clearing Planting weed control forest fire protection pests and diseases control monitoring/ management of plantation growth crop insurance (Partnership with UAP Insurance) General plantation security Customer reporting harvesting The company’s senior management team includes professional foresters/agronomists to provide appropriate advisory and execution expertise. Synergy Partners Uganda

7 Synergy Partners Uganda
Why invest? a) Retirement savings b) Children’s college/university fund c) Contribution towards a greener earth e) Varied medium/long term investment goals Synergy Partners Uganda

8 Projections for Pine investment – 18 years investment period
Synergy partners is offering two investment options at Amaya Farms: Option 1: Purchase of 5 acres of land Option 2: Purchase of 10 acres of land Some key areas of interest: - Start up costs Expenses on overheads and maintenance costs of managed forest Sales returns as Gross and Margin Cash-flows and Return on Investment Tax deductions per enterprise - These have been left out on basis of per investor payments and terms and conditions – Figures presented are exclusive of tax A key revenue assumption is that 300 trees per acre will be harvested at UGX 250,000 per tree Synergy Partners Uganda

9 Synergy Partners Uganda

10 Option 1 (5 Acre Pine Investment) Option 2 (10 Acre Pine Investment)
Projections A: Profit Forecasts (18 Year Period) Option 1 (5 Acre Pine Investment) Option 2 (10 Acre Pine Investment) UGX Total Revenue 375,000,000 750,000,000 Land (18,000,000) (34,000,000) Plantation establishment (4,850,000) (8,200,000) Overhead expenses and Maintenance Costs (36,000,000) (66,000,000) Total investment (58,850,000) (108,200,000) Profit 316,150,000 641,800,000 Synergy Partners Uganda

11 Synergy Partners Uganda
Return on investment A: Return on Investment (R.O.I) 5 acre option (UGX) 10 acre option (UGX) Start-up cost (A) 22,850,000 42,200,000 Additional investment total (B) 36,000,000 66,000,000 Average profit (C) 17,563,889 35,655,556 Return on investment (C/(A+B)) 30% 33% Synergy Partners Uganda


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