Vineyards in California and New Zealand have become a hot commodity lately, fueled by soaring high-end wine sales, greater access to credit and a rise in grape values.
Here in California sales for premium vineyards across the state are expected to climb to $800 million by year end, the most since 2007’s $1.4 billion sales total, reports the Demeter Group, a San Francisco-based investment bank. Sales were less than $150 million in both 2009 and 2010.
Stephen Rannekleiv, a New York-based wine analyst, tells Bloomberg, “It’s been a complete turnaround. There’s lots of interest in good California properties right now. If you’ve got vineyard acreage, it’s a hot commodity.”
The surge in deals comes at a time when premium wine sales have rose 14 percent year-over-year, and high-end wine sales have more than doubled the rate of overall wine sales, reports Bloomberg.
“It’s a fairly healthy situation, with access to credit again and strategic buyers looking for really good property,” notes Bill Stevens, a wine division manager for Silicon Valley Bank. “Wine producers got right-sized.”
In New Zealand, the allure of owning a vineyard is also gaining momentum as grape values rise. Prices of the 2013 vintages are on the rise – up over $500 per ton, and Sauvignon Blanc is currently trading at $1,800 per ton and up to $3,000 per ton for Pinot Noir. One reason the market is picking up is that there are no longer surpluses of grapes. As we reported in August, wineries need yields and are starting to purchase grape outputs for great money, even buying up some vineyards for their own guaranteed source of supply.
With vineyards such a hot commodity, optimism on the rise and banks willing to lend, now is an excellent time to take the leap and invest in the wine business. Below are three exceptional vineyard opportunities to consider (click the property’s photo for more information).
Temecula
$25,000,000
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Napa Valley
$8,400,000
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Marlborough, New Zeland
$6,500,000
