Under this model, investors lease a specific number of Aquilaria (agarwood) trees within a professionally managed plantation.
The estate operator handles cultivation, inoculation, maintenance, harvesting, and commercialization. Profits are shared at maturity based on the contract terms.
This structure provides exposure to agarwood production without owning land or managing operations directly.
Key Advantages
Lower Entry Cost
No need to purchase land or build infrastructure. Investors participate at a fraction of the cost of full plantation ownership.
Fully Managed & Hands-Off
All agricultural and technical work is handled by the estate operator.
Transparent Monitoring
Investors typically receive:
- Tree ID allocation (e.g., tagged/QR-coded trees)
- Periodic growth updates
- Inoculation and harvest reports
- Projected yield summaries
Diversification-Friendly
Suitable for investors who want to allocate smaller capital amounts across multiple agricultural or alternative assets.
Considerations & Risks
Dependent on Contract Structure
Profit-sharing percentages, cost deductions, and harvest timing significantly affect returns.
Biological & Market Risk
Returns depend on:
- Successful resin formation
- Proper inoculation
- Tree survival rate
- Market pricing at harvest
No Land Ownership
The investor does not typically hold title to land — only contractual rights to tree output.
Best Suited For
- First-time agarwood investors
- Overseas investors seeking simplicity
- Passive income seekers
- Investors testing the sector before scaling up