Centuria buys six Accolade Wines vineyards, SA
Centuria Capital Group (ASX: CNI) subsidiary, Primewest, has secured an off market portfolio of six vineyards across eight separate properties, totalling 113.74 ha, in addition to 223 Ml of water assets on a 10 year, triple-net sale-and-leaseback term to one of the world’s leading wine companies, Accolade Wines.
The non-contiguous land acquisitions and water assets were secured for $8.2 million on behalf of the Primewest Agricultural Trust No. 1 (PWAT1), which expands the Trust’s portfolio to 11 assets worth $115.2 million.
The estates provide a collective 74.95 ha of planted vines. The water assets are held across nine separate entitlements and are irrigation sources that support the crop production of the vineyards.
Andrew Tout, Centuria Head of Agriculture, said, “This was a rare opportunity to secure a viticultural portfolio across five well regarded South Australian wine regions, famed for producing internationally renowned wine varieties. Each estate is meticulously managed, with all vines hand pruned; an element that facilitates the production of ultra-premium wines such as St Hallett Blackwell Shiraz and the Petaluma Hanlin Hill Riesling, which recently received a James Halliday wine rating of 98/100.”
|Farm||Region||Planted Area (ha)||Variety|
|Resurrection Vineyard||Barossa Valley||17.55||Grenache, Mataro, Shiraz|
|Evans Vineyard||Coonawarra||15.31||Cabernet Sauvignon, Merlot, Shiraz|
|Hanlin Hill||Clare Valley||21.66||Malbec, Riesling, Shiraz|
|Stobie||Clare Valley||5.63||Riesling, Shiraz|
|Clarendon||McLaren Vale||9.13||Cabernet Sauvignon, Merlot, Sangiovese, Shiraz|
|Petaluma Gores Road||Adelaide Hills||5.67||Chardonnay, Pinot Gris, Pinot Noir|
The portfolio acquisition is the second transaction between Primewest and Accolade Wines. In mid-2021, winemaker, Rolf Binder, simultaneously sold his renowned brand to Accolade Wine and his Barossa Valley vineyard to PWAT1. Accolade Wines currently leases this vineyard from the Trust.
Accolade Wines is a global, premium wine and spirits company behind household brands such as Hardy’s, Echo Falls, Grant Burge, St Hallett and House of Arras. Its operations span 130 countries and are headquartered in Australia.
Matthew Adams, Accolade Wines’ General Manager, Strategy and Transformation, said, “The sale-and-leaseback arrangement for these well cultivated vineyards provides Accolade Wines with capital to reinvest in our premium wine production. Importantly, it also locks in grape supply for flagship brands in our premium range, ensuring we can continue making the great wines that our customers love.
“Accolade Wines has a proud heritage that has grown from humble beginnings in South Australia to a global market, with our labels found on dinner tables and restaurants around the world. Primewest understands the intricacies of the agricultural property market, and it’s a pleasure to be working with them again.”
The Accolade Wine portfolio transaction was settled in late July 2022 and was funded with existing cash reserves and debt.
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Centuria Capital Group has successfully exchanged conditional contracts to divest two adjoining industrial facilities located at 114 and 120 Old Pittwater Road, Brookvale NSW, which is anticipated to deliver a forecast 13.8% IRR to the assets’ closed-ended fund investors.