The listed Beston Wine Industry Trust, based in Adelaide & managed by Challenger Beston Ltd, has bought the Rarangi vineyard in Marlborough for $7.1 million and will put $7.02 million into its development over the next 3 years.
It’s the 5th property Beston has bought for lease to New Zealand winemaker Delegat’s Wine Estate Ltd. Delegat’s will plant sauvignon blanc, chardonnay & pinot noir grapes on the 142ha property (129.25ha to be planted), 11km north-east of Blenheim, for use under its Oyster Bay brand.
Delegat’s has a 10-year lease, with 3 5-year rights of renewal.
Beston Wine managing director Christopher Atkins said Rarangi was expected to be worth more than $20.4 million by 2009, when fully developed.
At the end of its June 2003 financial year, Beston owned 25 vineyards & 3 wineries, and had grown its assets over the year from $A79 million to $A132 million. It made $A5.3 million profit and provided a 10.2% annualised yield to investors.
With Delegat’s as tenant, the trust had $A31 million of vineyards in Hawke’s Bay (Gimblett Rd, State Highway 50 & the Crownthorpe development site above the Ngaururoro River, with 285ha planted to make it Hawke’s Bay’s biggest vineyard) & Marlborough (the 167ha Dashwood development site bought last year) before its latest purchase.
Delegat’s notes issue
Delegat’s is also seeking funds to expand in its own right, with a $35 million capital notes issue out in June to build wineries in Hawke’s Bay & Marlborough, and an equity raising of at least $40 million planned for the 2nd half of 2005.
The interest rate on the November 2007 notes is 9.75%, rising to 11.25% if the company’s equity-raising doesn’t proceed by 15 November 2005.