Cheviot finds potential buyer for Clare Valley Tullymore Vineyard

The embattled ASX-listed Cheviot Kirribilly Vineyard Property Group has found a potential buyer for its Tullymore Vineyard in the Clare Valley.

In a statement made to the ASX, Cheviot said it had “granted an exclusive option to a third party to acquire the Tullymore Vineyard”.

The option to buy the 200-hectare vineyard expires in 45 days.

The financial terms and the name of the potential buyer remain confidential.

Should the buyer take up the option it will leave another Clare Valley vineyard, the 251-hectare Kirribilly 1, as the last remaining vineyard in the group still up for sale.

Tullymore and Kirribilly 1 are being marketed by Colliers agents Tim Altschwager and Nick Dean, with the group hoping to sell both by April.

In January, Cheviot completed the sale of its two Angas Creek Vineyards in Gumeracha, in the Adelaide Hills (78 and 65 hectares) for $3.1 million.

In December Cheviot completed the sale of its two Langhorne Creek vineyards in South Australia –Birchmores Vineyard (293 hectares) and Woodstock Road Vineyard (67 hectares) – for $5.7 million.

The group also announced that it had come to an agreement with its financier to continue to proceed with the 2012 vintage of Kirribilly and Tullymore.

Current estimates are for a vintage of 1,900 tonnes, more than one-third higher than the 2011 yield but 10% lower than the long-term average.

Following the sales of the five vineyards, Tidewater Funds Management, the responsible entity of Cheviot Kirribilly Vineyard Property Trust, will begin the process of winding up the trust this month, with the view to completing the process by May.

Cheviot Kirribilly was forced to put its 953-hectare vineyard portfolio up for sale by its financiers last year due to an oversupply of grapes, changes in retail conditions, overseas competition and the strong Australian dollar.