Del Rios vineyard hangs vacancy sign

One of Australia’s largest grape-producing properties is on the market, with Belvino Investments putting its Del Rios vineyard up for sale or lease.

The almost 900ha vineyard on the Victorian side of the Murray River in Kenley, 77km north of Swan Hill, is being offered via public tender after winemaker Australian Vintage Ltd terminated its lease on the property late last year.

It represents almost one sixth of Belvino’s 5500ha of Australian plantings, the majority of which are leased to major wine companies.

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Colliers International’s Tim Altschwager and Nick Dean have been appointed to sell the vineyard, which is planted to produce Chardonnay (39%), Sauvignon Blanc (20%), Merlot (14%) and Shiraz (8.5%).

It also features infrastructure including offices, housing, sheds and other amenities for staff.

The Del Rios vineyard in Victoria has been put up for sale or lease.

Altschwager says the vineyard is one of Australia’s most significant and has the potential to accommodate crops other than grapes.

“The sheer scale of this vineyard, coupled with its large water entitlement, will draw significant interest from national and international wine industry participants, investors and potentially from prospects looking for suitable properties to convert to alternative crops such as almonds,” Altschwager says.

“With a vineyard area of nearly 900ha and high security water entitlements of 5476.2 megalitres, the well established Del Rios property will be highly sought after”.

Belvino Investments is majority owned by Hong Kong’s CK Life Sciences group, which also owns 1100 of vines across New Zealand.

The listing caps a busy start to 2016 for grape-producing real estate, after New South Wales Riverina winemaker Casella Family Brands bought South Australia’s Howcroft Estate Vineyard.

The property fetched more than $9 million – around $22,000 per hectare of vines planted.

“Howcroft Estate Vineyard is a large scale wine grape-producing asset, efficiently and expertly managed by Seven Fields Management Ltd,” Altschwager says.

“It presented as an extraordinary chance for both investors and existing wine industry participants to secure or significantly strengthen their future in the Australian industry. As such, the property was highly contested.”