INDEPENDENT NEWS

Booster purchase of Mahana Estates

Published: Thu 31 Jan 2019 01:41 PM
Media Release 31 January 2018
Booster steers a new course for KiwiSaver investors with the purchase of Mahana Estates.
Wellington, 31 January 2019 – Today Booster announced its purchase of the former Mahana Estates winery site and formation of the Booster Wine Group.
Booster’s specialist investment arm secured the Nelson-based site, adding to their other investments in the wine industry; Awatere River, Waimea Estates, Bannock Brae and Sileni Estates.
Over the last 18 months Booster’s strategy of supplementing listed shares with direct investment in local companies has changed the landscape for Kiwi investors. Booster’s move now marks another milestone in the KiwiSaver industry.
Through the purchase of the Mahana site and the formation of the Booster Wine Group, the KiwiSaver provider has created a new investment opportunity for the benefit of its KiwiSaver members. The norm in the KiwiSaver industry is to invest in easily tradable listed shares and bonds.
The acquisition significantly enhances the premium wine production capability of the Booster Wine Group. It adds one of the best premium wine making facilities in New Zealand to the group and creates significant scale and synergies that strengthens the group’s ability to be internationally competitive.
“Most New Zealand wineries, as small independent businesses, have always been challenged by scale. The Booster Wine Group allows our wineries to focus on what they do best – produce world-class wine, while still remaining Kiwi owned and operated,” says Allan Yeo, Managing Director of Booster.
“The wine industry is one of New Zealand’s most successful exports. We’re pleased to be keeping a piece of it in local ownership and giving everyday Kiwi investors the chance to share in its success.”
The latest purchase brings the total production of the Booster Wine Group to the equivalent of 1 million cases per year for this coming vintage. The site features a unique gravity-fed facility that will produce high-quality wine, while providing the opportunity to streamline the production of all the premium and super premium wineries in the group.
“In addition to the synergies we can achieve with our other wine investments, we are pleased to have brought a beautiful piece of land and a state-of-the-art wine making facility back into Kiwi ownership. New Zealanders collectively had more than $50b in their KiwiSaver accounts last year – however, only a fraction of this is being invested back into New Zealand businesses,” adds Yeo.
Booster has several other investments in its pipeline which are expected to be finalised and announced this year.
“Booster Tahi helps invest Kiwi savings back into successful New Zealand businesses to help fulfil their growth potential and to keep them Kiwi owned. While our initial focus has been on horticulture investments in wine, kiwifruit and avocados, we see exciting opportunities in other areas as Tahi grows,” says Yeo.
ENDS

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