Weekend Argus (Saturday Edition)
Cape wine farms change hands as weaker rand helps to sharpen overseas buyers’ interest
FROM Constantia Valley to Stellenbosch, and the Franschhoek and Paarl valleys, the wine regions are an important contributor to the economy and a vital part of what attracts visitors to the province, says Pierre Germishuys, Seeff ’s managing director for the winelands.
“Our wine regions, wines and tourism products can compare with some of the best in the world,” Germishuys said.
“Apart from restoring old, rundown farms and facilitating world- class i nfrastructure development with wineries that produce world-renowned wines, the industry is an important job creator and has played a key role in reviving and preserving the country’s winemaking heritage,” he says.
“Recent reports by Wines of South Africa show that exports for the first half of this year are up by 40 percent year-onyear following record exports for 2012.
“Wine tourism is also one of the fastest-growing and most lucrative sectors of the global tourism market and contributes about R4.3 billion a year to the country’s tourism revenue.
“The wine farms across the province continue to attract thousands of local and international visitors a year who indulge in wine- tasting and buying, gourmet delights, and who enjoy the many events and festivals on offer.”
Germishuys says the weakened currency and continued e c o nomic uncer t a i nt y i n Europe had led to an increase in interest from local and foreign buyers in wine farms in the Western Cape over the past few months. Wine estates here are significantly cheaper than in other wine regions, such as Italy and France.
The most notable sales have been that of Val de Vie, to a Chinese buyer, and the Constantia Uitsig wine farm, which was on the market for R175 million.
Klein Constantia was sold about 18 months ago for about R200m, and more recently Lanzerac in Paarl was sold for about R220m and Mulderbosch and its sister winery, Kanu, for R85m.
Stellenbosch agent Andre Malan says there have also been a number of sales in the R30m to R85m range.
These transactions are handled discreetly, says Malan.
“Wine farms are priced from just over R20m in the Franschhoek Valley to around R300m for a top wine farm brand in the Stellenbosch area,” says Germishuys.
“Pricing is governed by a number of aspects, including the region, strength of the brand, size of the land under vine, grape varieties and whether there is demand for these.
“The infrastructure and facilities such as a hotel, cottages, restaurants and a winery all come into play in determining the price.
“Franschhoek vineyard estates now sell for between R1m a hectare and R1.2m/ha, while Stellenbosch farms are priced at between R800 000/ha and R1m/ha. Wine estates in the Paarl Valley sell for between R400 0 0 0 / ha a nd R600 000/ha.”
Malan says: “Smaller wine farm brands in the Stellenbosch area sell for between R40m and R45m. Those with hospitality facilities sell for between R60m and R70m, whereas top-end wine estate brands can sell for between R150m and R300m.”
Agent Melina Visser says: “Often, sellers prefer to not draw attention to the properties. For example, we have exceptional estates on our books, priced at between R25m and R170m, which are not widely advertised. In the Paarl area a boutique winery is on offer for about R21.5m.”
The 58ha farm has 11ha planted with top-quality red grape varieties. The estate produces mostly shiraz blends. Its maiden vintage in 2002 was recognised by the British Decanter World Wine Awards as being among the top 10 shirazes.
The farm includes a spacious home with offices, a guest rondavel and a rental cottage, a wine cellar and outbuildings.
In the Franschhoek area, buyers could look at a 2.2ha farm, with about 1.9ha under cabernet vines, that is on offer at R32.5m, including VAT.
A 24ha farm is on the market for R30m in the Paarl/Franschhoek Valley. About 10ha are planted with a number of grape varieties and there are 5 300 guava trees.