July 20, 2011

Marlborough wine opportunity on the market for sale

A trio of viticulture operations – including a vertically integrated winery business, and two lifestyle and income vineyards - are on the market for sale in the heart of Marlborough’s wine region.

Headlining the portfolio of viticulture operations is River Farm Wines. The River Farm Wines brand was established in 2008, operating a cellar door, and producing a range of limited edition wines as well as extra virgin olive oil.

The Blenheim-based business is located 1km east of Renwick in Marlborough’s popular wine trail, on the corner of State Highway 6.

The property sits on 9.2 hectares, with 13,580 vines producing a diversified range of styles - including sauvignon blanc, pinot gris, chardonnay, pinot noir, Gewürztraminer, syrah and voignier, and merlot - all on phylloxera resistant rootstock. There are also 400 olive trees alongside the established vineyard which are used to produce extra virgin olive oil.

In 2011 River Farm Wines produced a total of more than 50 tonnes of wine from its vines. The winery has a 2008 capital value of $2.3 million, with annual rates of $7,282.

The winery is for sale by a tender process through Bayleys Blenheim. Bayleys viticulture salesperson John Hoare said the sale of River Farm Wines offered a prime opportunity for a new owner to take on an existing wine business and wine label.

“The current owner has worked hard on building the reputation of River Farm Wines over the last three years, producing high quality wine marketed at the top end of the market,” he said.

“This is likely to be an attractive opportunity for those looking to take on an existing business which has gained support from both the local and international market. The winery is in a proven location for producing quality grapes, and is an ideal location to generate traffic and sales through the cellar door.”

The sale of River Farm Wines includes the cellar door sales/tastings room with adjacent office facilities, a four bay implement shed, and single car garage which is currently used as a storage room.

River Farm Wines’ cellar door received a Gold Award at the Wine Marlborough Cellar Door of the Year Awards.

The winery sources 200 cubic metres of water each day from an inground bore, and also has a Southern Valleys' Irrigation Scheme irrigation option.

The property includes a two-bedroom cottage situated on 6000 square metres of landscaped grounds, including a swimming pool.

Also on the market for sale through Bayleys are two lifestyle and income properties in Fairhall, Blenheim.

The first is a 6.8 hectare property which has 3.2 hectares is of vines producing sauvignon blanc, and two hectares of vines producing pinot gris. A total of 55 tonnes of sauvignon blanc and 14 tonnes of pinot gris were produced in 2011.

The property has a 2008 capital value of $1.12 million, and annual rates of $4632.

The sale includes a one bedroom renovated cottage with an extensive decked area, a separate restored original utility room, and a 121.5 square metre workshop/implement storage barn.

Mr Hoare said: “This property features an elevated bare-land site where the vendor has drawn up plans for the building of a main dwelling. The new building would offer expansive views of the Wairau plain, leaving the cottage for additional guest accommodation.”

The second lifestyle and income property features nine hectares of vines producing sauvignon blanc. The vines are fully managed, and have a five year grape purchase agreement in place.

Included in the sale are a three bedroom home, as well as large separate outbuildings, full irrigation, and a frost protection machine. The property has a 2008 capital value of $1.765million, and yearly rates of $6,579.

Mr Hoare said: “Both of the properties in Fairhall would ideally suit a purchaser wanting the sunny Marlborough lifestyle with an additional income stream. Both properties are located close to both primary and secondary schooling so they could suit a family.”

Tenders close for each of the three properties on August 12.

ENDS

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