A 252-acre vineyard located in McLaren Vale’s ‘dress circle’ has sold for $10 million. The vineyard comprises three separate vineyards which were sold as a single transaction. The vineyard has chosen to remain anonymous.
Demonstrating a growing demand for high-quality South Australian vineyards, the property received strong interest from local and international investors.
Knight Frank’s Associate Director, Agri Business, South Australia, Russell Iles brokered the deal and said the sale was significant for the region.
“We’re noticing a growing demand for vineyards with a track record for high-quality production. South Australian wineries are renowned for consistently producing at the highest standard, and as such, they attract investors, both locally and from overseas.
“At $10 million, the sale achieved close to $40,000 an acre which is an excellent result. It’s a significant win for McLaren Vale and really sets the bar for future transactions.”
The vendors said they are very pleased with the result.
With access from Tatachilla and Communication Road, the vineyard offers premium-grade fruit, heavily weighted to mainstream varieties such as Shiraz and Cabernet Sauvignon, with an attractive supply of in-demand alternate varieties. The well-established vineyard is in excellent condition and boasts a substantial water license – one of the most integral factors to vine health security.
The sale comes 18 months after Knight Frank established a dedicated Agri Business division, solely focused on agricultural and viticulture properties. Since launch, Knight Frank has sold a total of 709 acres in McLaren Vale – approximately 17% of the acreage planted to vines in region.
Mr Iles said, “We’re really pleased with how well the agribusiness division has taken off in such a short space of time. We’ve been working hard to build strong relationships with local property owners, having already completed significant transactions in the region. We’re continuing to build momentum and now have a number of other vineyards and wineries on the market.”
As of 2016, South Australia’s wine production is valued at around $951 million. South Australia is responsible for around 51% of Australia’s total winecrush and produces almost 80% of Australia’s premium wine.
