Bidding War Tipped for Massive Tasmanian Vineyard

Tasmania’s largest greenfield vineyard opportunity to be offered in recent history has been listed—and agents are bracing for a bidding war.

The Tasman Vineyards 394ha vineyard aggregation south of Launceston Airport is the property for sale.

Colliers’ agents Duncan McCulloch and James Beer said they expected major wine industry players and high-net-worth investors looking for a foothold in the cool climate wines of Tasmania to be attracted to the property.

It features 185ha of land suitable for wine grapes with 37ha already planted with pinot noir and chardonnay vines, and 856 megalitres of water entitlements.

“At full maturity, the aggregation is expected to produce more than 2000 tonnes of wine grapes,” McCulloch said.

“It represents an enormous development opportunity for either an existing local or international viticulture player or a new entrant to the market.”

The property is being offered for sale or lease with offers expected to exceed $10 million.

Wine is a $7-billion-a-year market in Australia. There are more than 2000 wine producers and about 17,000 people employed in the sector.

IBIS World analysts have forecast a drop in revenue in the Australian winemaking industry of about 1.2 per cent this financial year, but this was forecast to improve over the next five years. China’s anti-dumping duties on Australian wine are also constraining industry growth.

“Globally, there is a long-term trend towards consuming greater volumes of higher-value wine, and within Australia cooler climate wines are becoming increasingly more popular,” Colliers agent James Beer said.

“Currently, less than 10 per cent of Tasmanian wine is exported, compared to 63 per cent of all Australian wine.”

McCulloch said Tasmania had become a hot spot for investment during the past year.

“Not only does Tasmania present a highly desirable clean, green image and a sought-after lifestyle, but we are finding the events of the past year are motivating people to look outside major CBDs for investment and lifestyle locations,” McCulloch said.

Corelogic’s latest home value index revealed Hobart’s house prices were robust and had increased 2.5 per cent last month, and 8.7 per cent for the past 12 months.

The pair has also been commissioned to sell Sorell Creek, a 718ha parcel of grazing land nestled between the Derwent River near to the growing New Norfolk township and Hobart.

The property had already received approval for a 43-lot residential subdivision. McCulloch said it represented an “unparalleled development and land bank opportunity”.

An expressions of interest campaign is open for Sorell Creek until May 13 with price expectations beyond $4 million.