$12m vineyard development opens

Wine company, Sacred Hill and rural investment specialist, MyFarm are partnering up to offer investors a share in a large scale Marlborough Sauvignon Blanc vineyard development.

Bartletts Creek is a bareland block in the Wairau valley, which Sacred Hill plans to convert into a 166 canopy hectare Sauvignon Blanc vineyard over the next two years.

Investors are being offered the opportunity to purchase units in Bartletts Creek Vineyard Limited Partnership, which will own the new vineyard, and receive a lease rental from Sacred Hill once the property is fully developed.

Sacred Hill is one of New Zealand’s largest independently owned wine companies. Established in 1986, today it successfully operates vineyards in both Hawkes Bay and Marlborough. Sacred Hill’s production is comprised of owned, leased and contract vineyards.

Managing director David Mason says the lease model frees up Sacred Hill’s working capital, allowing it to focus on marketing and exporting its wines. The grapes from Bartletts Creek will be destined for the American export market.

“Marlborough Sauvignon Blanc has become a brand in its own right and the export market demand for it just continues to grow. We have seen that this year with NZ exports to North America increasing by 24%.”

Bartletts Creek is the second vineyard investment opportunity from MyFarm, which raised $6.6 million during September and October for the purchase of a 72 hectare established vineyard in the Wairau Valley.

MyFarm Chief executive, Andrew Watters says investors are looking for alternative assets for a portion of their portfolio to drive cashflow returns and as a good diversification to commercial property returns. 

"Marlborough Sauvignon Blanc is a clear export success story with investments forecast to show strong lease-based returns supported by capital growth because of the potential for the Marlborough Sauvignon Blanc appellation.”

He says the Barletts Creek development proposal works because of the Sacred Hill partnership.

“Sacred Hill is a proven developer and manager of high quality vineyards, a leading producer of high quality Marlborough Sauvignon Blanc wines and as a large-scale wine producer, it has the financial strength you’re looking for in a lessee.”

Key Information:

 

•       MyFarm is seeking to raise $12 million for Bartletts Creek Limited Partnership by 7 December 2016

•       Projected returns increasing from 5% in years 1-2 to 8% from year 3

•       Forecasts and accounting advice suggests that these returns will be Tax Free due to development expenses and the depreciation available on the new development

•       Projected Capital gain 12-25% as result of development

•       Minimum investment level $100,000 ** wholesale investors only

•       See full details at http://www.bartlettscreek.co.nz/

 

Contacts

 

David Mason

Andrew Watters

Sacred Hill Managing Director

MyFarm Chief Executive

EDavid.Mason@sacredhill.com

andreww@myfarm.co.nz

021 445 978

P029 440 6605