There are no buildings on the 70 ha for sale. The area however lends itself to the erection of accommodation with some of the best views of the adjacent farms, vineyards, Stellenbosch mountains, Table Mountain & False Bay.
Vineyards â€“ The following vineyards are in production on the land:
Cultivar - Ha - Production (liters)
Cabernet Sauvignon 7.17 ha 45Â 500 (liters)
Shiraz 4.55 ha 55Â 000 (liters)
Pinotage 8.47 ha 45Â 000 (liters)
Sauvignon Blanc 8.39 ha 95Â 500 (liters)
Vacant land ready to be planted 6.58 ha
Total 35.16 ha 283Â 500 (liters)
Access Roads - Access to the land is currently through the vineyards of an existing wine estate â€“ but various alternative access roads can be made.
Water Rights â€“ at present the land shares water supply with the adjacent wine estateâ€™s dam with a capacity of 30Â 000 cubic meters and 264Â 000 cubic meters water rights from the river. This dam provides sufficient water all year round for the needs of both the adjacent wine estate and the 70 hectares for sale.
Electricity supply â€“ Escom - for irrigation and accommodation is available and a connection can be made to the existing power supply line.
Investment Proposal â€“ Although a potential investor could develop and farm the land as a standalone farming unit, various options exist for farming and wine making in co-operation with the adjacent wine estate.
Some of the options that can be negotiated:
Option 1 - Appointing the owner of the wine estate to manage the farming operations on behalf of the investor at an agreed fee.
1.1 Grapes to be either sold to other companies or to be made wine of in the estateâ€™s cellar;
1.2 Selling price â€“ R35 million
1.3 Estimated capital needed to replant vacant areas : R850Â 000
1.4 Estimated capital needed to clear other potential areas for vineyard production: R1 million
Option 2 â€“ Leasing the vineyards to the adjacent wine estateâ€™s owner to farm for his own account at an agreed rental.
2.1 Selling price â€“ R35 million
2.2 Leasing of the vineyards at market value rates
2.3 Any new development on portion A for the account of the investor
Option 3 â€“ The investor obtain 35hare in the wine estateâ€™s brand and winery
3.1 Selling price â€“ R35 million
3.2 Infrastructure investment in cellar â€“ R6 million (Total = R41 million)
3.3 Under option 3 the investor has the opportunity to appoint the owner of the wine estate to manage the farming operations on the 70 ha land at an agreed fee (VinPro rates)
The advantages of Option 3 can be stipulated as follows:
- Infrastructure already developed;
- Markets already developed;
- Costs for new winery plus all legislation limits can easily take a few years to obtain & can be expensive exercise
- Liquor license in place
- Wine estate has an 15ncrease in sales year on year directly from farm. The preferred investor would be a foreign or local investor with existing investment in wine markets. Such investor would have the opportunity to market the wines from the 70 ha and of the adjacent wine estate on overseas markets â€“ thereby adding value. The vineyards currently on the 70 ha produce approximately 290 tons of grapes which can be turned into 187Â 000 litres of wine.
- The investor will be given access to the water rights of the adjacent estate and can have the use of the cellar. The investor can have the wines marketed under his/her own brand or under the wine estateâ€™s brand and in the process tap into an existing well-run farming and wine making operation without the need to make a capital outlay other than the purchase price of the land.