A Shared-Capital Model for Sustainable Agroforestry Plantations
TerraForestry™ Plantation Co-Investment is a structured model in which multiple qualified investors participate in a professionally managed plantation project, sharing the capital requirements, development costs, operational framework, and—subject to the legal structure—economic benefits of the project.
The model is designed to make large-scale agroforestry development more accessible while maintaining centralized professional plantation management.
1. HOW THE MODEL WORKS
CO-INVESTORS
↓
PROJECT SPV / INVESTMENT VEHICLE
↓
LAND + PLANTATION DEVELOPMENT
↓
TERRAFORSTRY™ FARM MANAGEMENT
↓
AGRITRACE™ TRACEABILITY
↓
TREE GROWTH & RESIN DEVELOPMENT
↓
HARVEST & PROCESSING
↓
PRODUCT SALES
↓
PROJECT REVENUE
↓
COSTS + RESERVES + TAXES
↓
DISTRIBUTABLE RETURNS, IF ANY
2. CO-INVESTOR PARTICIPATION
Instead of one investor funding the entire plantation, the project can be capitalized by a group of investors.
For example:
| Participant | Illustrative Contribution |
|---|---|
| Anchor Investor | ₱10,000,000 |
| Investor A | ₱5,000,000 |
| Investor B | ₱2,500,000 |
| Investor C | ₱2,500,000 |
| Total Project Capital | ₱20,000,000 |
Illustrative only—not an investment offer or projected return.
The actual ownership or economic participation would depend on the project’s legal and financial structure.
3. WHAT THE CAPITAL FINANCES
Co-investment capital may be allocated across the plantation lifecycle:
🌱 Establishment
- Site preparation
- Nursery production
- Seedlings
- Planting
- Farm infrastructure
- Irrigation/water systems
🌳 Plantation Development
- Fertilization and soil management
- Weed management
- Tree maintenance
- Replacement planting
- Pest and disease management
- Farm security
🧬 Resin Development
For agarwood projects, eligible activities may include:
- Tree monitoring
- Resin-development programs
- Induction management
- Treatment documentation
- Pre-harvest assessment
🏭 Processing
Where included in the project:
- Harvest processing
- Agarwood grading
- Distillation
- Extraction
- Packaging
- Product development
4. INVESTOR OWNERSHIP OPTIONS
The model can potentially be structured in several ways.
A. Equity Co-Investment
Investors acquire shares in a project company.
Investor → Project SPV → Plantation
Economic participation follows the shareholder structure.
B. Project-Level Joint Venture
Investors participate through a negotiated JV arrangement.
CAPI + Investors → JV Entity → Plantation Project
C. Co-Managed Plantation
The investor provides project capital while TerraForestry™ provides professional plantation management under a formal management agreement.
D. Tree-Equivalent Participation
The project may internally track investor participation through defined tree-equivalent units.
For example:
1 Investment Unit → Defined Number of Plantation Trees
However, the legal rights attached to such units must be carefully defined and reviewed. A “tree share” should not be presented as a guaranteed ownership or return instrument without confirming its legal and regulatory treatment.
5. TERRAFORSTRY™ MANAGEMENT ROLE
A major advantage of the co-investment model is centralized professional management.
TerraForestry™ can coordinate:
Farm Operations
- Plantation planning
- Farm scheduling
- Labor
- Inputs
- Maintenance
- Monitoring
Technical Management
- Tree health
- Growth monitoring
- Resin-development programs
- Harvest planning
Digital Management
- Tree Registry™
- Farm Block Management
- Treatment records
- Harvest records
- AgriTrace™ integration
Commercial Management
- Harvest aggregation
- Processing
- Product development
- Buyer relationships
- Market development
6. INVESTOR REPORTING
Each co-investor should receive standardized project reporting.
Quarterly / Periodic Reports
Plantation
- Trees planted
- Survival rate
- Growth status
- Plantation area
- Farm activities
Financial
- Capital deployed
- Operating expenditure
- Project revenue
- Cash position
- Budget vs. actual
Sustainability
- Trees established
- Soil-management activities
- Biodiversity indicators
- Water stewardship
- Community employment
Traceability
- Tree ID
- Farm block
- Treatment history
- Harvest lot
- Processing batch
7. REVENUE WATERFALL
A transparent distribution mechanism is essential.
PROJECT REVENUE
↓
Operating Costs
↓
Taxes & Regulatory Costs
↓
Processing / Marketing Costs
↓
Maintenance & Replacement Reserve
↓
Project Financing / Obligations
↓
Investor Distribution Pool
↓
Distribution According to Legal Agreement
The exact waterfall should be established in the project documentation before capital is accepted.
8. CO-INVESTMENT ADVANTAGES
For Investors
Lower Individual Capital Requirement
Multiple investors share project capitalization.
Professional Management
Investors do not need to operate the plantation themselves.
Diversification
Participation can potentially span plantation, processing and downstream value creation.
Transparency
Digital records can provide visibility into plantation development.
Long-Term Asset Development
Trees represent biological assets that develop over time.
For CAPI
Larger Capital Base
Supports larger plantation projects.
Capital-Risk Sharing
Project financing is distributed among participating investors.
Scalable Plantation Platform
Multiple project SPVs can potentially be developed.
Long-Term Investor Network
Creates a pool of strategic capital partners.
9. RISK MANAGEMENT
A professional co-investment structure should explicitly address:
🌦 Agricultural Risk
Climate, drought, storms and other environmental events.
🌳 Biological Risk
Tree mortality, pests, diseases and variable resin development.
💰 Market Risk
Changes in agarwood, oud, timber and agricultural commodity prices.
🏭 Processing Risk
Technology performance, processing costs and product-market acceptance.
⚖️ Regulatory Risk
Land, forestry, environmental, wildlife, export, corporate and investment regulations.
📊 Investment Risk
Returns are not guaranteed, and plantation projects may involve long holding periods and uncertain harvest outcomes.
10. PROJECT STRUCTURE
A scalable TerraForestry™ co-investment platform could look like:
CROWN AGROFORESTRY PLANTATIONS INC.
Platform Sponsor
↓
TERRAFORSTRY™
Management & Technology Platform
↓
PROJECT SPV 01
Plantation Project A
PROJECT SPV 02
Plantation Project B
PROJECT SPV 03
Plantation + Processing Project
↓
CO-INVESTORS
↓
PLANTATION ASSETS
↓
HARVEST
↓
PROCESSING
↓
MARKETS
This structure allows individual projects to be separately accounted for and potentially separately financed.
11. THE CO-INVESTMENT PRINCIPLE
ONE PLATFORM
TerraForestry™
MULTIPLE PROJECTS
Different plantation locations and asset classes
MULTIPLE INVESTORS
Different capital participation levels
ONE MANAGEMENT STANDARD
Consistent operating, reporting and sustainability framework
TRACEABLE VALUE CHAIN
Tree → Farm → Harvest → Processing → Product → Market
INVESTMENT POSITIONING
TerraForestry™ Plantation Co-Investment brings investors together to develop professionally managed, sustainable agroforestry assets—combining shared capital, centralized management, digital traceability, and integrated value-chain development.
Share the Capital.
Grow the Plantation.
Build the Value Chain.
Create Long-Term Sustainable Value.
Crown Agroforestry Plantations Inc.
TerraForestry™ — Co-Investing in the Future of Sustainable Agroforestry.