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News
Australian Vintage sells Barossa vineyard
Producer Australian Vintage has undertaken two deals, as it moves forward as a business, and the demand for luxury wine in China heats up.
The Australian wine producer, which recently raised AU$15 million (£8m) from institutional investors, will now receive further additional money into the business from the new deals.
According to the Business News Australia, the first deal has seen the producer, which is renowned for its McGuigan and Tempus Two brands, surrendering the lease with Belvino for the Balranald Vineyard in the Riverina, with a purchaser already reportedly secured.
The news claimed said that forecasts predict a net cash flow benefit of $12.6 million over the remaining seven-year lease term.
Lyndoch
In addition, Australian Vintage has sold its 230-acre Lyndoch vineyard in the Barossa Valley to Seppeltsfield for an undisclosed sum.
The vineyard is the last part of its ownership of Chateau Yaldara set up in 1946, and which led to the merging with McGuigan, and eventually the creation of the Australian Vintage brand name in 2008. Although the heritage buildings were sold to businessman Arthur Wang in 2014, it kept hold of the Lyndoch estate.
Seppeltsfield, which is part of The Randall Wine Group, said it had made the purchase to capitalise on the demand for luxury Australian wine in China, now the punative tariffs have finally been lifted.
The vineyard is planted to Shiraz, Cabernet Sauvignon, Mataro and Grenache, with the grapes crushed through the 1888 Gravity Flow winery at Seppeltsfield in 2025, it said.
It comes as exports to China have soared since the lifting of the tariffs, with Australian winemakers shipping AU$86 million-worth of wine to China in the first month alone.
Strong addition
Seppeltsfield executive chairman and proprietor, Warren Randall said it was a “strong addition to our already dominant position in the Barossa Valley landscape”.
He said: “China’s demand for luxury Australian wines prior to the tariffs was very strong and the Lyndoch Barossa Valley vineyard acquisition offered Seppeltsfield an opportunity to fortify our supply volumes of luxury wines for a thirsty market”
“Our vineyard holdings in the Barossa Valley now exceed 4,000 acres, growing 10,000 tonnes, producing nearly 10 million bottles of luxury Barossa Valley wine every year”.