Vineyards produce enthusiastic vibe10.08.2016
Xaview Duff - Thee Weekly Times
THE RECENT spate of vineyard sales continues with Del Rios, one of the largest vineyards in Australia, changing hands following strong interest from a range of local, national and international buyers.
Colliers International’s Tim Altschwager and Nick Dean have brokered the sale of the Del Rios vineyard in Victoria to Melbourne-based GoFarm Australia on behalf of Belvino Investments. The property is understood to have sold for between $22-$25 million.
Mr Altschwager said the vineyard, situated on the Murray River in Kenley, north of Swan Hill, was one of most significant vineyards in Australia.
“With a vineyard area of nearly 900ha and high security water entitlements of 5,476.2 megalitres, the well-established Del Rios property generated interest from a range of local, national and international groups, before ultimately being acquired by Melbourne-based agricultural developer/manager GoFarm,” Mr Altschwager said.
“Many parties were interested in the large water entitlement alone.
“The solid inquiry we received is representative of increased interest in Australian wine industry assets, which is largely due to more favourable fundamentals, a lower Australian dollar, free trade agreements and the return of the US and UK to the market.
“Bulk wine stocks are currently low. We are receiving increased levels of inquiry for wine industry assets and, in particular, large scale warm climate vineyards that can produce high volumes of fruit to take advantage of increased overseas demand for fruit and wine.”
And in another vineyard deal Riverland SA operator Kingston Estate Wines bought the 252ha New Residence vineyard at Loxton for an undisclosed amount in a deal also negotiated by Colliers International on behalf of Seven Fields.
New Residence Vineyard comprises 36.4 per cent red varieties and 63.6 per cent white. It was developed in 2001 and planted to 233ha with the balance of the land comprising headlands, internal roads and shed curtilage.
“We received significant interest from both domestic and international investors and existing wine industry participants who were looking to secure or significantly strengthen their position in the Australian wine industry,” Mr Altschwager said.
“The portfolio also included the Conundrum vineyard in the Riverland region and the Howcroft Estate vineyards in the Bordertown wine region,” Mr Altschwager said.
“The Conundrum vineyard is currently under contract and the Howcroft vineyard was sold to Casella Wines in December 2015.”