MyFarm Investments has completed a $16.5 million syndication, enabling a partnership of 35 investors to purchase a 127-hectare Marlborough Sauvignon Blanc vineyard, despite the level 4 lockdown.
CEO, Andrew Watters says MyFarm began promoting the offer to invest in Awatere Vineyard Limited Partnership in early March.
With the unconditional purchase date falling midway through the Level 4 lockdown MyFarm offered committed investors the opportunity to withdraw. Only one did citing changing personal circumstances. Three additional investors joined the group after the lockdown began. The vendors also agreed to increase their planned stake in the partnership in order for the deal to proceed.
Andrew Watters says the fact that the partnership went unconditional with the purchase on Easter Thursday speaks volumes about investors’ belief in the property and the potential for New Zealand viticulture sector to deliver ongoing stable returns.
“We had investors asking us to keep working on it, that they needed this investment to go ahead.”
The vineyard has a supply agreement with Villa Maria which has managed to successfully complete its harvest of the mainly Sauvignon Blanc Crop during the lockdown.
The vineyard is forecast to generate cash returns of 7.5 - 8% p.a with the new owners scheduled to receive their first distribution payments in June.
For further information please contact:
CEO, MyFarm Investments.
P 029 440 6605