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:
- 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;
- 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;
- 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.”