Treasury Wine Estates sells Heathcote and Bordertown vineyard portfolios

Australian global winemaker Treasury Wine Estates has sold two commercial vineyards in separate deals worth more than $20 million.

Wine heavyweight Treasury Wine Estates has offloaded a pair of southern Australian vineyards in separate deals understood to be worth more than $23 million.

The world’s largest manager of farmland assets, Nuveen Natural Capital, has acquired Treasury Wine Estates’ 552ha Heathcote vineyard portfolio, in a deal reportedly worth $14 million.

Comprising three central Victorian properties near Corop, the portfolio offered 434ha of vines planted as a commercial vineyard producing more than 4000 tonnes of grapes a year.

A water portfolio of 945ML of entitlements was also sold for an undisclosed price.

Nuveen Natural Capital, which is backed by the New York-based Fortune 100 financial company Teachers Insurance and Annuity Association of America, owns an Australian agricultural portfolio of more than 65 properties and agribusinesses occupying 350,000 hectares, valued at $2.2 billion.

Nuveen Natural Capital have also reportedly acquired another two Australian vineyards, diversifying from its predominantly row crop portfolio.

Meanwhile, Treasury Wine Estates has also sold its Bordertown vineyard portfolio in southeast South Australia to the nearby CW Wines.

The family-owned Coonawarra winemaker, established in 2014, has acquired the property in a deal struck late last year.

Treasury Wine Estates have sold their 488ha Bordertown Vineyard Portfolio, located in southeast South Australia.

The value of the sale remains undisclosed, but was expected to receive offers of about $25,000 per planted hectare, or $9.35 million in total, when it was listed for sale last year.

Comprising 487.81ha, with the total vineyard area of about 374.16ha, the portfolio has produced a variety of grapes including Cabernet Sauvignon, Chardonnay, Merlot, Shiraz, and

Tempranillo with a 10-year average production of about 3600 tonnes.

The Bordertown Vineyard Portfolio was listed for sale in June last year.

Water entitlements of up to 1086.7ML were also offered for sale, which is understood to have also been purchased by CW Wines.

CW Wines owns and manages about 600ha of vineyards across the Limestone Coast and Coonawarra, and also purchases fruit from growers across a number of regions.

Colliers Agribusiness national director Tim Altschwager and selling agent Nick Dean handled the sale of the Bordertown vineyard portfolio.

The two sales follow Treasury Wine Estates’ decision to push into the luxury wine market, announcing the closure of its Karadoc winery due to a slump in commercial sales.

Commercial vineyards are classified as those which produce bottles of wine valued at $10 or less.