Winery sale to fund expansion
Nelson wine company Kahurangi Estate is offering its Upper Moutere vineyard and winery for sale to investors with a long leaseback in place.
It is owned by Greg and Amanda Day, who focus on aromatic grape varieties.
Greg Day said he wanted to expand the liquor distribution side of the business.
‘‘It means I can get rid of debt and have money left over to fund the growth so I don’t have to get down on my knees to the banks.’’
Kahurangi Estate is a wellknown vineyard producing wines for sale locally and overseas.
The vineyard was planted in 1973 and has the oldest commercial riesling vines in the South Island.
It was acquired by the Days when they moved back to New Zealand with their young family in 1998.
Their daughter Samantha joined the business in 2008.
Kahurangi also carries out contract processing for other wine companies and growers, and imports and distributes wine, port, sherry and cognac from various international and domestic producers.
Kahurangi has now decided to sell its 12.8-hectare property at the junction of Moutere Highway and Sunrise Rd, and take on a 10-year lease with the new owner or owners.
The rent paid by Kahurangi Estate Ltd will be 7.5 per cent of the agreed purchase price.
The property, which is visible to travellers along the Moutere Highway, comprises a 900-tonne winery (excluding the plant), cellar door and cafe as well as a 9.88ha vineyard with some of oldest commercially grown riesling vines in the South Island.
"It means I can get rid of debt and have money left over to fund the growth so I don't have to get down on my knees to the banks." Owner Greg Day, above
The other grape varieties are pinot noir, sauvignon blanc, chardonnay, gewurztraminer, pinot gris and montepulciano.
The property also includes a four-bedroom home and twobedroom cottage.
Ken Montgomery of Colliers International is marketing the property with Mike Laven.
Montgomery described the sale as appealing to investors attracted to the Nelson lifestyle but who want a passive investment.
Kahurangi also owns Melness Wines based in Cust, north Canterbury, which it acquired in 2005 from the Marshall family.
Its other brand is Trout Valley Wines, which uses grapes from seven contract grape growers in the Nelson region.