Buyers confident in SA Horticulture and Viticulture
Buyers confident in SA Horticulture and Viticulture
| 8 December 2020
Redevelopment opportunities, water security and some of the world’s best wine regions have made South Australia’s horticulture and viticulture properties hot property in recent times – with $32 million of listed land piquing an array of investor interest.
Angus Bills and Phil Schell of CBRE Agribusiness said that while the past couple of vintages had been tough for most regions around South Australia, vineyard prices had continued to rise in most regions across the state – with the team experiencing strong demand for its current listings, some recently attracting over 90 enquiries and more than 10 offers.
With over $32 million (687Ha) worth of this asset class listed for sale, properties include CMV Farms located 11km west of Langhorne Creek, Tweedies Gully Vineyard in the Barossa Valley and Alexandrina Vineyard, Langhorne Creek.
Planted to Shiraz, Cabernet Sauvignon, Merlot, Chardonnay, Pinot Noir, Sauvignon Blanc, Pinot Gris, Pinot Meunier and Glera, CMV Farms is for sale via Private Treaty.
The 414Ha vineyard, with 147Ha suited to development and 351ML of bore water available, features significant irrigation infrastructure via two main supply pumps from Lake Alexandrina and a third water resource via the Creeks Pipeline Company (CPC) from Tailem Bend, located on the Murray River.
Located circa 55km northeast of the Adelaide CBD, with picturesque views and potential for building development (STCC), the 21.57Ha Tweedies Gully Vineyard features 11Ha of Cabernet Franc, Shiraz, Chardonnay and White Frontignac and 15.8ML of Barossa Prescribed Water Resources Area and 16ML of Barossa Infrastructure Limited in water security. Tweedies Gully is for sale by Private Treaty, with price expectations of $1,600,000.
Alexandrina Vineyard represents an opportunity to purchase a $6 million, 104.5Ha vineyard – with 89.09Ha currently planted to 100% red grape varieties including Shiraz, Cabernet Sauvignon, Cabernet Franc, Sangiovese, Malbec and Petit Verdot – which features a grand 220ML of River Murray PWC entitlements, an additional underground licence and access to the Creeks Pipeline Company, as well as current contracts with Treasury Wine Estates, The Wine Group, Atlas Wines and Australian Swan Vintage.
Mr Bills said that the team was seeing many buyers currently seeking redevelopment opportunities, with a keen focus on water security, and that some of these listed properties would suit their needs.
The primary production properties have varied in size, ranging from 8.5Ha up to 1,232Ha, and crops have included wine grapes, citrus, almonds, olives and stone fruit.
Notable sales over the past year have included:
•Agosta Vineyards in Loxton – three non-contiguous properties, with a total land area of 295Ha – which sold by Private Treaty to Century Orchards for $1,637,000, including a 100ML water licence via Central Irrigation Trust;
•Starcomgistic Australia’s 1,232Ha Coonalpyn Olives to Tatiara Olive Processing via Private Treaty, with 1136ML water licence (Tintinara Coonalpyn Prescribed Wells Area) and 214Ha planted to Barnea, Manzanillo, Leccino, Frantoio and Picual;
•David and Karin King’s 25.27Ha Northern Kings Vineyard at Loxton North, which sold to Salmon Gum Estates via an Expressions of Interest campaign, with 20.7Ha planted to Chardonnay, Semillon, Shiraz, Sauvignon Blanc, Colombard, Cabernet Sauvignon and Merlot – the grapes had previously sold to The Wine Group and Limestone Coast Wines;
•McBride Viticulture Pty Ltd’s “Faraway Vineyard”, Wrattonbully – 33Ha planted to Shiraz, Cabernet Sauvignon and Malbec inclusive of a 115 megalitre water licence. The property was sold in an off-market Expression of Interest campaign for approximately $69,000/Ha; and
•Ulithorne Vineyard, Blewitt Springs included a total land area of 8.54Ha being 6.85Ha planted to Shiraz and Grenache recently sold to Jericho Family Wines for $1,032,000.
Bookpurnong Fruits at Bookpurnong is currently pending settlement in December which includes 26.95 hectares planted to nectarines, peaches, apricots, plums, apriums and pluots. The property also includes a 5ML water licence and site use approval for 400ML.
“Purchasers have included local buyers purchasing blocks for ideal add-on properties, existing industry producers and large corporate groups,” Mr Bills continued.
“Buyer cohorts have expressed steady interest in wine grapes (both high-quality fruit and bulk) and properties in wine regions for blending opportunities, as well as almond and citrus crops, whilst being consistently interested in landholdings with permanent water entitlements, water banking opportunities and, if these aren't available, site use approval for irrigation or the ability to lease water from another producer or an existing scheme.”
Mr Schell said; “We are lucky in South Australia to have some of the world's best wine regions right in our backyard and, with access to local markets and ports, our fruit is able to be distributed domestically and internationally with ease.”
“In addition to this, ideal climate, soils and access to water all culminate in an ideal end-product that is in high demand all around the world,” he said.
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