Tenders to close for premium Cabernet Sauvignon and Shiraz Coonawarra vineyards

Tenders to close for premium Cabernet Sauvignon and Shiraz Coonawarra vineyards
Tenders to close for premium Cabernet Sauvignon and Shiraz Coonawarra vineyards

Tenders close tomorrow for 333 hectares of vineyards in the Coonawarra wine-growing region of South Australia, most famous for Cabernet Sauvignon and Shiraz wines.

Up for sale is the Coonawarra Premium Vineyards (CPV) Project No. 1 & 2, a subsidiary of the Coonawarra Australia Property Trust.

There are 309 hectares of planted vineyards on six titles  with red varieties – Cabernet Sauvignon, Shiraz and Merlot – constituting around 85% of total plantings along with smaller parcels of white grapes: Chardonnay, Semillon and Sauvignon Blanc.

Also up for sale is a contemporary masonry residence, currently used as an office, temporary accommodation and staff amenities, a number of sheds and 16 iron clad pumping stations which serve both to irrigate the vines and to provide water for frost protection.

The Coonawarra Australia Property Trust was placed in receivership in March this year, with its shares suspended from trading on the ASX at the same time.

John Hart and David Kidman of Ferrier Hodgson were appointed as receivers, including the CPV property with land title documents showing a mortgage to the Commonwealth Bank.

The vineyards are being sold on behalf of the receivers with the sales campaign led by Tim Altschwager and Nick Dean from Colliers International Rural and Agribusiness Wine Industry specialist practice.

Altschwager says no price guide has been given, but “similar vineyards in the Coonawarra area have recently attracted figures in excess of $20,000 per vine area".

“We expect quality vineyards planted to premium varieties to attract figures well in excess of that rate,” Altschwager tells Property Observer.

Coonawarra is one of Australia’s most renowned wine regions and is acclaimed internationally for its Cabernet Sauvignon and Shiraz wines, which thrive in the cool and sunny climate and in the famous terra rossa soils.

The CPV portfolio comprises two contiguous vineyards, which may be operated separately, having separate infrastructure and water entitlements, are currently operated as one operation.

Historically Coonawarra produces around 40,000 tonnes of fruit per annum out of the 100,000 tonnes produced in the Limestone Coast zone, second largest producer in South Australia after the Riverland Zone.

Premium wines produced in the Coonawarra region are all represented in a tight strip along the Riddoch Highway and include Wynns, Penfolds, Petaluma, Katnook Estate, Lindemans, Orlando, Bowen Estate, Balnaves, Zema Estate, DiGiorgio Wines, Hollick Wines and Majella.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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