1. AMAYA TREE ESTATE: MANAGED FOREST INVESTMENT OPPORTUNITY
Synergy Partners Uganda

2. About Synergy Partners
Synergy Partners is a real estate development company headquartered at Kisozi Complex, Plot 6 Kyaggwe road, Nakasero. In addition, the firm has a show house at Birungi Estate, Kira.
The firm has steadily become one of the leading land developers in Uganda. Our niche is affordable housing communities, and managed agriculture estates. Our competitive advantage is passion, integrity, and hard work.
Residential portfolio:
Kira (Birungi Estate)
Gayaza (Naava & Sanyu Estates)
Matugga (Malaika Estate)
Managed agriculture estates:
Nakasongola (Amaya Tree Estate)
Find out more:
Synergy Partners Uganda

3. 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

4. Introducing Amaya Tree Estate
Located approximately 160 km away from Kampala (1 hour and 30 minute drive), on the Gulu highway in Nakasongola district, Synergy Partners located the perfect location for this new venture. The project site begins right from the tarmac road, a key logistics advantage.
About Nakasongola
Population: 440,000
Ethnicity: Baganda, Baruli, Banyarwanda
Main occupation: Cattle Keeping/Ranching; commercial forestry
Key tourist attractions: Zziwa Rhino Sanctuary, Nakasongola Hills
Others: UPDF Airforce base and Heavy Artillery Unit
Synergy Partners has undertaken a commercial tree planting project, Amaya Tree Estate, on an initial 680 acres (1 square mile) of land in Nakitoma, Nakasongola district. The project will eventually be expanded to cover an additional 2,040 acres (3 square miles), making the total 4 square miles. Amaya Tree Estate, an investment product, provides a nexus between environmental conservation and economic development.
According to our research, Pine is the most feasible commercial tree to grow on Amaya Tree Estate. Pine takes approximately 15 years to fully mature to a viable tree diameter.
Synergy Partners Uganda

5. Key features of project
Description
Comments
Type of asset
Managed forest estate
Types of trees
Pine (PCH)
How many years to full maturity?
Pine will take typically take 15 years and above. The older the tree, the more cubic mass it will have.
Location
Nakitoma, Nakasongola District.
Size of land
Initial 680 acres, divided in chunks of 5 and 10 acres each. Additional 2,040 acres to be developed.
Licenses
The company expects to eventually obtain relevant licenses from the Ministry of Water & Environment to facilitate harvesting.
Purchase of land
5 acre plot – 16.0 million
10 acre plot – 30.0 million
Additional investment requirement
Year 1: establishment costs (one off)
5 acre plot – 4.85 million
10 acre plot – 8.2 million
Year 1 – 15: annual maintenance costs
5 acre plot – 2.4 million per year (36 million over 10 years)
10 acre plot – 4.4 million per year (66 million over 10 years)
Estimated profit
(One off harvest)
5 acre plot – 318 million
10 acre plot – 645 million
Synergy Partners Uganda

6. Key risks to consider for the investment
Political and economic risks – Uganda is a developing country; risks like foreign exchange fluctuation and land tenure challenges should be considered.
Diseases
Fire
Damage from stray animals We recommend that customers insure their investment by taking adequate political and crop insurance cover with leading insurance companies.
Synergy Partners Uganda

7. Synergy Partners as a forestry partner
After purchasing the forestry 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
General plantation security
Customer reporting
and harvesting
The company’s senior management team includes a professional forester/agronomist to provide appropriate advisory and execution expertise.
Synergy Partners Uganda

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

9. Synergy Partners Uganda
Projections
This section presents an insight into the business model and key figures of interest for purposes of understanding the opportunity and decision making.
Synergy partners is offering two investment options at Amaya Tree Estate:
Option 1: Purchase of 5 acres of land
Option 2: Purchase of 10 acres of land
Some key areas of interest to you are: -
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
Synergy Partners Uganda

10. Option 1 (5 Acre Pine Investment) Option 2 (10 Acre Pine Investment)
Projections
A: Profit Forecasts (15 Year Period)
Option 1 (5 Acre Pine Investment)
Option 2 (10 Acre Pine Investment)
UGX
Total Revenue
375,000,000
750,000,000
Land
(16,000,000)
(30,000,000)
Plantation establishment
(4,850,000)
(8,200,000)
Overhead expenses and Maintenance Costs
(36,000,000)
(66,000,000)
Total investment
(56,850,000)
(104,200,000)
Profit
318,150,000
645,800,000
Synergy Partners Uganda

11. Synergy Partners Uganda
5 acres Vs 10 acres
Synergy Partners Uganda

12. Option 1 (5 Acre Pine Investment) Option 2 (10 Acre Pine Investment)
Key figures
D:Profit and Costs per acre and tree
Option 1 (5 Acre Pine Investment)
Option 2 (10 Acre Pine Investment)
Total trees per acre
300
Number of acres 5 10
Start-up costs per acre (UGX)
4,170,000
3,820,000
Production costs per acre (UGX)
7,200,000
6,600,000
Start-up cost per tree (UGX)
13,893
12,727
Production cost per tree (UGX)
23,988
21,899
Net profit per acre (UGX)
44,541,000
45,206,000
Net profit per tree (UGX)
148,470
150,687
Synergy Partners Uganda

13. Synergy Partners Uganda
Return on investment
A: Return on Investment (R.O.I)
UGX
Start-up cost (A)
20,850,000
38,200,000
Additional investment total (B)
36,000,000
66,000,000
Average profit (C)
14,847,000
30,137,333
Return on investment (C/(A+B))
27%
30%
B. Internal Rate of Return (I.R.R)
13%
17%
Synergy Partners Uganda