Boutique wine farms in demand say agents
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While high-end wine farms are a bit slow to sell these days, Kevin Layden, Seeff agent for farms in the Stellenbosch and Boland areas note that boutique wine farms are experiencing high demand, especially to around the R30 million price mark.
Boutique wine farms tend to limit financial exposure, hence the higher demand. There is however limited availability in the Stellenbosch area, but buyers and investors can find more stock in the Paarl and Wellington region. Interest is coming from local and international buyers, he says.
Generally, boutique farms are selling in the R20m-R40m range and commercial wine farms in the R50m-R75m range. Top end wine brands on the market range from around R100m-R250m, but at this end of the market they are not actively promoted and marketed and sold on a confidential basis, says Mr Layden.
South Africa's wine farms continue to attract tourism from across the country and globe. There are about 560 wine farms in the Cape and about 20 tourist wine routes and these continue to grow. Most of the farms have wine tasting and tourist facilities, and some also offer accommodation. Some of the best restaurants in the country are also located on the wine farm such as Babel (housed in an old Cow shed) at Babylonstoren which is booked up well in advance and Pierneef à La Motte at La Motte where you can also see a collection of Pierneef's art.
The most recent wine farms sold include:
1) Knorhoek (Stellenbosch) for R94 million
2) Uitkyk (Klapmuts/Paarl), a 590ha farm sold for R91,164 million
3) Warwick (Stellenbosch) - a 109ha farm sold for R80 million
4) Le Bonheur (Klapmuts/Paarl) - R55 million
5) L'Avenir (Klapmuts/Paarl) - R40,450 million
6) Lievland (Klapmuts/Paarl) - R35 million
7) Pink Valley (Helderberg Rural, near Somerset West) - R34 million
8) Stellenzicht (Stellenbosch) - amount not disclosed
Nelia Retief from Seeff Tulbagh says that the Tulbagh/Witzenberg area is seeing growing demand for wine farms as it offers a slightly lower price point compared to Stellenbosch/Franschhoek/Paarl and as a growing tourist region, there is loads of potential and demand.
She says that there is also rising demand from foreign buyers, especially German buyers, predominantly in the R15m-R40m price range.
Tulbagh is a popular wine growing region and home to a number of wineries such as Saronsberg, Montpellier and Theuniskraal.
The opportunity to invest in a boutique or commercial wine farm is one that many buyers and investors aspire to, says Ms Retief.
South Africa now boast around 18 official wine routes and 2 brandy routes. Vines are planted across the Western Cape, from the Constantia and Durbanville Wine Valleys within the Cape metro to the Somerset West and the Winelands region of Stellenbosch, Franschhoek, Paarl and Wellington, as far as the Riebeek Valley to Bamboes Bay on the West Cape coast, then up to the Robertson and Montagu areas, down to the Hemel-en-Aarde valley in Hermanus and on to Hartswater in the Northern Cape and Rietrivier in the south western Free State.
Aside from direct employment and the agricultural sector contributions made by the wine sector, it is also an important tourist product for the country. Samuel Seeff, chairman of the Seeff Property Group says that the Cape Winelands are among the most beautiful wine regions in the world and is part of why tourists from all over the globe visitor South Africa annually.
Stellenbosch - Mooizicht, R31 million for 70ha wine farm
Franschhoek - Dieu Donne, R40 million for 18,4ha wine farm with a traditional Cape Dutch home and breath taking views over the Franschhoek Valley and Village
Franschhoek - La Bourgogne, R52 million for 22ha wine farm on the banks of the Franschhoek River in the heart of the exclusive upper Franschhoek Valley with a manor house built over time and the oldest section dating back to 1694
Tulbagh/Wolseley - Waverley Hills, R39 million for 82ha boutique organic wine farm
Author: Gina Meintjes