Local buyer snaps up one of Australia's largest vineyards in Victoria

Victoria's Del Rios, one of Australia's largest vineyards, has been sold for between $22 million and $25 million.

There was strong interest from a range of local, national and international buyers.

Colliers International's Tim Altschwager and Nick Dean brokered the sale to Melbourne-based GoFarm Australia on behalf of Belvino Investments.

Tim Altschwager said the vineyard, located on the Murray River in Kenley, 77km 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," he said.

“Many parties were interested in the large water entitlement alone.

“The solid enquiry 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. 

He said with bulk wine stocks currently low.

"We are receiving increased levels of enquiry 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.”

Located within the Murray Darling Wine Region, the second largest wine region in Australia, has about 1,300 growers and 23,000 hectares of vineyards producing around 400,000 tonnes annually.

The vineyard was established from 1998 to 2003 and is predominantly planted to Chardonnay (39%), Sauvignon Blanc (20%), Merlot (14%) and Shiraz (8.5%). 

Extensive infrastructure servicing this large scale irrigated vineyard includes office, housing, sheds and staff amenities. 

In last 12 months, four of the five largest vineyards in Australia have changed hands, with Duxton Group acquiring the Littore Vineyards and Macquarie Bank’s Chalmers Vineyard, in addition to the sale of Del Rios and rumours of the Dunvar vineyard at Darlinton Point recently selling. 

 “This vineyard movement has wine companies hungrily seeking grapes for 2017 and investors seeking warm climate vineyards to purchase,” he said.