CMV Group seeking offers of $12m for Langhorne Creek vineyards

One of South Australia’s largest privately owned companies is selling two of its vineyard holdings with a $12m price tag.

The vineyards are located between Langhorne Creek and Strathalbyn. Picture: CBRE

One of South Australia’s largest privately owned companies is hoping to attract offers of about $12m for its vineyard holdings at Langhorne Creek.

The Crawford family’s CMV Group, which operates a network of car dealerships and a farming division comprising close to 1800ha of almonds, pistachios and wine grapes across Australia, is looking to sell off the Jim’s Block and Sid’s Run vineyards that stretch across 414ha between the towns of Langhorne Creek and Strathalbyn.

The vineyards were developed in 1998 and include plantings of shiraz, cabernet sauvig­non, merlot, chardonnay, pinot noir, sauvignon blanc, pinot gris, pinot meunier and glera grapes.

CBRE Agribusiness director Angus Bills, who has been appointed to sell the vineyards, said the large scale of the offering was likely to generate interest from a range of buyer groups.

“The scale and production capabilities of Langhorne Creek vineyards make it an attractive option for investors looking to expand their portfolio or enter the industry at scale,” he said.

Offers of about $12m are expected for the vineyard holdings. Picture: CBRE

“The vineyards offer excellent fit-for-purpose infrastructure, including two dwellings, a large workshop/machinery shed, an office, sundry shedding, and two lined storage dams with a capacity of 262 million litres. The vineyards span both the Langhorne Creek and Fleurieu wine regions.”

Mr Bills said significant irrigation infrastructure included two main supply pumps from Lake Alexandrina, using the Creeks Pipeline Company via Wellington and through a 351 million litre groundwater ­licence.

CMV Group’s roots date back to 1934, when founder Sidney Crawford set out to specialise in the sale and service of commercial vehicles.

The company now operates car dealerships for Toyota, Lexus, Mercedes-Benz and other vehicle brands in Adelaide, as well as truck centres across South Australia and Victoria.

It established its CMV Farms division in 1980, with crops in South Australia and Victoria.

According to research house IBISWorld, CMV Group is South Australia’s second-largest privately owned company behind Thomas Foods, with annual revenue of more than $2bn.

The sale of its Langhorne Creek vineyards comes as another family-owned grower – Patritti – looks to sell its Dover Gardens winery and McLaren Vale vineyards.

Patritti is the state’s only remaining family-owned, fully-­operational suburban winery, having operated from Dover Gardens, just 12km from the Adelaide CBD, since it was established by Italian immigrant Giovanni Patritti in 1926.

The family put its decision to exit the industry in part down to the “challenges faced by the industry in recent years”.

There are hopes China’s decision in March last year to lift tariffs on Australian wine will spark a turnaround for the embattled wine industry, which is still reeling from three years of trade restrictions with what was once a $1.2bn market for local producers.

However, high borrowing costs, a glut of wine and an uncertain outlook for global wine consumption have continued to crimp transaction activity involving wine assets, with deals taking longer to get over the line, and buyers needing to be convinced about future opportunities for growth.

Expressions of interest in the CMV Farms vineyards close on March 12, a week after expressions of interest in Patritti close on March 6.

Originally published as CMV Group seeking offers of $12m for Langhorne Creek vineyards