Centuria subsidiary Primewest has secured a portfolio of six vineyards across eight properties in South Australia through an $8.2 million sale-and-leaseback deal with Accolade Wines.
The 10-year, triple-net transaction included 223ML of water assets and 74.95 hectares of planted vines.
The assets were purchased on behalf of the Primewest Agricultural Trust No. 1 (PWAT1), growing its portfolio to 11 assets worth $115.2 million.
The water assets were held across nine separate entitlements and were irrigation sources that supported the crop production of the vineyards.
“This was a rare opportunity to secure a viticultural portfolio across five well-regarded South Australian wine regions, famed for producing internationally renowned wine varieties,” Centuria Head of Agriculture Andrew Tout said.
“Each estate is meticulously managed, with all vines hand-pruned; an element that facilitates in the production of ultra-premium wines such as St Hallett Blackwell Shiraz and the Petaluma Hanlin Hill Riesling, which recently received a James Halliday wine rating of 98/100.”
The deal is the second transaction between Primewest and Accolade Wines after winemaker Rolf Binder sold his brand to Accolade Wine in mid-2021, while simultaneously selling his Barossa Valley vineyard to PWAT1.
Matthew Adams, Accolade Wines’ General Manager, Strategy and Transformation, said the sale-and-leaseback arrangement for the vineyards provided Accolade Wines with capital to reinvest into their premium wine production.
“Importantly, it also locks in grape supply for flagship brands in our premium range, ensuring we can continue making the great wines that our customers love,” Adams said.
“Accolade Wines has a proud heritage that has grown from humble beginnings in South Australia to a global market, with our labels found on dinner tables and restaurants around the world.
“Primewest understands the intricacies of the agricultural property market, and it’s a pleasure to be working with them again.”
The deal comes after the Centuria Agriculture Fund bought a $177 million glasshouse – one of Australia’s largest – in the regional Victorian town of Warragul in June.