Value of top Bur­gundy vine­yards soars

Decanter - - A MONTH IN WINE -

PRICES FOR TOP-END Bur­gundy grand cru vine­yards in the Côte d’Or have dou­bled in the past decade, from an es­ti­mated €7 mil­lion in 2008 to just un­der €14 mil­lion in 2017, ac­cord­ing to french land agency safer.

The in­crease fol­lows sev­eral years of soar­ing global de­mand for wines from the most prized Bur­gundy cli­mats, cou­pled with high-pro­file vine­yard buy­outs by wealthy in­vestors in re­cent years.

How­ever, there is a wide vari­a­tion in val­u­a­tion; safer said the prices of grands crus started at an es­ti­mated €2.75 mil­lion per hectare in 2017.

When françois pin­ault, the owner of Bordeaux first growth Château Latour, bought Clos de Tart in Morey-st-De­nis last year, the value of the deal was es­ti­mated by french busi­ness news­pa­per Chal­lenges at more than €200 mil­lion. Clos de Tart has 7.53ha of vines.

An ac­cu­rate fig­ure for the value of the deal was never for­mally dis­closed, al­though it was the lat­est of sev­eral ma­jor in­vest­ments in the re­gion.

Amer­i­can bil­lion­aire stan Kroenke, who also owns Arse­nal foot­ball club, pur­chased Bon­neau du Mar­tray, with its vines on the hill of Cor­ton, in 2017. prior to that, lux­ury goods group LVMH bought Clos des Lam­brays, also sit­u­ated in Morey-st-De­nis.

‘The era of cor­po­rate and bil­lion­aire own­er­ship in Bur­gundy has be­gun,’ wrote De­can­ter colum­nist An­drew Jef­ford ear­lier this year.

There have been con­cerns in the re­gion for sev­eral years about the im­pli­ca­tions of ris­ing vine­yard prices for fam­ily-owned es­tates seek­ing to nav­i­gate a path through french land suc­ces­sion laws.

While Bur­gundy grand cru vine­yard prices have soared, there re­mains a sig­nif­i­cant dis­par­ity be­tween the top of the re­gion’s cli­mat pyra­mid and the base. A sin­gle hectare of vine­yard land in the re­gional Bur­gundy ap­pel­la­tion had a top price of €70,500 in 2017 – up from about €45,000 10 years ago – and a low price of €12,700, fig­ures from safer show.

The D122 road links some of the most pres­ti­gious vine­yards in Bur­gundy

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