Sale, leaseback offers blanc cheque
A commercial winery operation in one of New Zealand’s premier wine-growing regions has been placed on the market offering an 8.5 per cent yield through a leaseback arrangement to an awardwinning vintner.
The 1.76ha freehold land title at 146 Ugbrooke Rd, Lower Dashwood, Marlborough, sustains Awatere River winery, a boutique producer notable for its sauvignon blanc.
Bayleys Marlborough director Glenn Dick says the land and improvements alone present an inimitable offering, sweetened by immediate occupancy and plans for operational expansion.
“The established tenant is eager to stay on and expects to negotiate a lease on a gross yield basis, or approximately 8.5 per cent of the ultimate sale value. This provides flexibility for the new owner and a ‘best of both worlds’ dimension with a diversified asset earning a steady cash flow and a consistent return on investment.
“The tenant has plans to improve operational efficiency and increase output by investing in bottling equipment and
focusing on supply to key international markets. This would see investors leverage a booming local wine sector by enhancing the current facility to improve profitability and boost rental return.
“New Zealand’s winegrowers report that strong export value and international demand for certain varieties, like Marlborough-grown sauvignon blanc, will support further industry growth over the coming year..”
The tenant has proposed a 15-year initial
lease term from the settlement date, with perpetual renewal rights of 10 years each.
Dick is marketing the property with colleague Ryan Johnson, inviting expressions of interest closing 2pm, Tuesday April 2.
The expansive estate features a total floor area of 821sq m comprising a cellar door and tasting facilities, an underground barrel hall, fully equipped laboratory, cold storage and modern offices.