Handsfree Central Otago viticulture investment

Handsfree Central Otago viticulture investment

A Central Otago vineyard is for sale with a long-term leaseback to the vendor, providing an opportunity to invest passively in the viticulture sector at a competitive yield.

The property at 351 Maori Point Road, Tarras, comprises 28.5ha of land across two lots planted with pinot noir and pinot gris. A buyer or syndicate could purchase either lot individually or together.

Colliers International’s specialist Rural and Agribusiness team has been exclusively appointed to take the opportunity to market.

National Co-Director Ruth Hodges says the opportunity provides a long-term full operational lease on an established vineyard.

“This is chance to invest passively in New Zealand’s renowned viticulture sector, with the benefit of a strong tenant with longstanding grower relationships, great infrastructure and systems.

“There is also an excellent joint management model between the tenant and top viticulture contractors.

“The vineyard was planted in 2005 and was purchased in 2012 by the current owner, who has brought the vineyard up to its full production potential. It is exceptionally well developed, with excess capacity in its infrastructure.

“The vineyard is planted with 16.22ha of pinot noir, which is Central Otago’s most acclaimed varietal, alongside 6.37ha of pinot gris.”

Three options are available to interested parties:

  1. Purchase of Lot 3, which comprises a 15.7ha vineyard on 20.58ha of land, for $2.65 million plus GST, with a leaseback returning $149,500 plus GST in net annual rent;
  2. Purchase of Lot 4, which comprises a 7.75ha vineyard on 7.94ha of land, for $1.195m plus GST, with a leaseback returning $73,625 plus GST;
  3. Purchase of both lots for $3.845m plus GST, with a leaseback returning $222,775 plus GST.

Buyers have the option to invest alone or buy as a part of a syndicate, with minimum investment parcels of $550,000 plus GST if any.

Mike Eyles, Rural Sales Broker at Colliers, says the land is located on a single river terrace with easy undulating land.

“The property has consent to draw water from the Clutha River and access to an irrigation scheme that includes a 32 million litre dam.

“An electric pump is utilised for vine irrigation and fertigation and two diesel pumps provide overhead sprinkler frost protection for the entire vineyard. There is also under-vine dripper irrigation.

“The appropriate easements to access the water storage and pumping infrastructure will be provided upon settlement.”

Hodges says passive investors seeking exposure to New Zealand’s acclaimed wine industry should look no further.

“This is a handsfree investment with none of the headaches of active ownership and management. For sale at a competitive yield of 5.8 per cent, the opportunity is sure to appeal to a range of buyers.”

Related Experts

Ruth Hodges

National Co-Director

Queenstown

Ruth commenced her career in rural real estate in August 2009 before establishing the first Colliers International Rural and Agribusiness franchise in New Zealand with Shane O’Brien in September 2014. Ruth has been integral in setting up the new Rural and Agribusiness systems for Colliers International and has recently stepped in to lead the growth of this business in Otago and Southland. The Otago Southland Rural and Agribusiness team also partners with companies that have strongly established regional connections - Compass Agribusiness and Colliers Queenstown (Otago Realty Limited).

Growing up on a large scale high country farm in Central Otago set the foundation for Ruth’s desire to be involved in the rural industry throughout her working life. After achieving a first class honours degree from Otago University, Ruth commenced her career in rural finance that spanned nine years with the National Bank. Not content to sit still for long, she joined the progressive new dairy company Synlait as their Business Development Manager focusing on growing their farming assets via key acquisitions around the Canterbury region. Ruth has also been involved in the rural building industry with her husband Nigel, and the experience of the incredible highs and lows that this industry encountered over the past 12 years has honed her management and problem solving skills to the highest level.

As a rural real estate professional, Ruth's business is about people and their farming businesses - and focussing on this instead of just the physical assets is key to how she achieves positive outcomes regardless of market conditions. Her underlying principles of trust and integrity ensures she continue to form long lasting, genuine relationships and apply an open, honest approach to all situations. Furthermore, Ruth's comprehensive understanding of an often complex and evolving rural market together with her ever-present proactive attitude allows her to provide solutions that go beyond the traditional real estate model.

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Mike Eyles

Rural Sales

Queenstown

Mike is a Central Otago local with 10 years sales experience across a number of different industries. A University of Otago graduate with a Bachelor in Consumer and Applied Science Degree (BCapSC), Mike spent three and a half years working for Lion Breweries in Central Otago where he made sure the area was well watered with Speights but also gained his love and knowledge of the NZ wine industry.

Growing up in Central Otago, Mike has spent time on and off farms in Otago and Southland. His family has a shareholding in a 300ha Sheep and Deer farm in Five Rivers where he spends time helping out when he can.

Mike works closely with key business partners across the agribusiness, viticulture and horticulture space and is passionate about building relationships and knowledge in these areas. He is excited to be working alongside experienced rural consultant Ruth Hodges and is backed by a strong local and global brand in Colliers International.

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