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Media Release
23.05.2012

Liquidator places River Farm vineyards on the market for sale

A pair of productive vineyards have been placed on the market for sale through a liquidation process. The two vineyards are in heart of Marlborough’s wine region and were placed into liquidation by shareholder David Dew earlier this year.

The liquidation sale encompasses the cellar door vineyard on Godfrey Road and a Sauvignon Blanc vineyard on Ben Morven Road, Fairhall. The River Farm Wines brand,which was established in 2008, is also available for sale – previously operating a cellar door retail outlet, and producing a range of limited edition wines as well as extra virgin olive oil.

The two viticulture activities have been placed on the market for sale by auction on June 8 through Bayleys Marlborough. Wine industry specialists John Hoare and Tim Crawford from Bayleys Marlborough have been tasked with achieving the sale for the liquidators, Richard Longman and John Fisk of PwC.

Mr Hoare said the larger River Farm Wines operation on Godfrey Road near the outskirts of Renwick consisted of 9.2 hectares of planted vines - with 13,580 vines producing a diversified range of styles - including sauvignon blanc, pinot gris, chardonnay, pinot noir, Gewürztraminer, syrah, viognier, and merlot.

Some 400 olive trees alongside the established vineyard were also used to produce extra virgin olive oil, Mr Hoare said. In 2011, Godfrey Road produced more than 43 tonnes of grapes from its vines.

The wine-producing land has a 2011 capital value of $1.3million. It sources 200 cubic metres of water each day from an in-ground bore, and also has a Southern Valleys' Irrigation Scheme irrigation option.

The property incorporates a two-bedroom cottage situated on 6000 square metres of landscaped grounds - including a swimming pool. Infrastructure buildings on the Godfrey Road vineyard include a cellar door sales/tastings room with adjacent office facilities, and single double garage currently used as a storage room.

A small winery was planned to be built on the River Farm Wines site – with a capacity to turn out up to 25,000 cases of wine annually – although Mr Hoare said full consent had yet to be applied for. The River Farm wine company received a Gold Award at the Wine Marlborough Cellar Door of the Year Awards in 2011.

Meanwhile, the Ben Morven Road property in the Fairhall region, features a nine hectare block of land and a dwelling – with some eight hectares of vineyard canopy. The vineyard has access to the Southern Valleys Irrigation Scheme and also has shares in the Korere Water Company.

A three-bedroom residence is included with the vineyard, as well as a large separate outbuilding, full irrigation system, and a frost protection machine. The property has a 2011 capital value of $1.175million.

A lawyer by profession, Mr Dew said that handing over the liquidation process to PwC would allow him to concentrate on his other commercial interests, as well as pursuing his political ambitions.

Liquidator Richard Longman said the recent demand for grapes and the outlook for the wine industry bode well for the sale of the properties.

“Both the vineyards are well-tended, producing quality grapes, and we’re seeing increased activity in the price bracket where these properties sit, so I'm optimistic for the sale of these properties," Mr Longman said.

Bayleys sales person John Hoare said the Godfrey Road and Fairhall properties were being auctioned separately, and the liquidator reserved the right to consider offers in advance of the June 8 auction.

“Through the numerous marketing campaigns we have successfully completed for various vineyards in the Marlborough region over the past two years, we have an extensive network database of potential buyers who have all been informed about these vineyards,” Mr Hoare said.

“Both locations have consistently produced good fruit levels – with all the 2012 harvest sold during the liquidation process. As a result, we have already received strong interest on the offerings, and are confident of concluding a sale to allow everyone to move on and a new owner to profit from what is a well-run set of vineyards.”

ends

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