Global Realty Development Corp. to acquire Dominion Wines and Dominion Estates
Dominion Wines consists of a fully operational, state-of-the-art winery situated on approximately 110 acres of property, which includes 24.1 acres of premium grade chardonnay wine grapes.
29/08/05 Global Realty Development Corp., an international land development company, has announced that it has executed letters of intent to acquire both Dominion Wines, Ltd. and Dominion Estates Pty, Ltd., located in Alexander Park, Australia, approximately 140 kilometers north of Melbourne, Australia in the Strathbogie Ranges. The Strathbogie Ranges are located in central Victoria, and is an area that is fast earning distinction as one of the premier winemaking regions in the world.
Dominion Wines consists of a fully operational, state-of-the-art winery situated on approximately 110 acres of property, which includes 24.1 acres of premium grade chardonnay wine grapes. The winery currently has a processing capacity of approximately 7,500 tonnes equating to approximately 525,000 cases of wine. Since 1999, Dominion Wines has been producing its own line of vintage reds and whites under its proprietary labels: Vinus and Alexander Park. In addition, the winery provides contract wine making services to numerous Australian wine companies, including Southcorp and Casella, two of the most prominent wine makers and marketers in the world.
The adjoining property, Dominion Estates, has a total area of approximately 1,262 acres (or 510.6 hectares), which includes approximately 205 acres of premium wine grape vines. The balance of the property is used for grazing, and houses three homesteads, machinery, wool shearing and hay sheds along with a full complement of plants and equipment to service all the related viticulture and grazing needs. The property is further serviced by major water storage dams totaling approximately 445 mega-liters of water ensuring the property of all its agricultural water needs.
Subject to board approval and other predetermined conditions to closing, Global Realty expects to pay AUD$9 million (US$6.8 million) for the winery, payable in restricted shares of Global Realty valued at AUD$5.8 million (US$4.4 million) and a promissory note for AUD$3.2 million (US$2.4 million).
The Company has agreed to pay AUD$9.1 million (US$6.9 million) for Dominion Estates, payable in restricted shares of Global Realty valued at AUD$4.335 million (US$3.3 million) and debt assumption of AUD$4.765 million (US$3.6 million).
Global Realty Development Corp. is an international land development company operating through various real estate development subsidiaries. The Company is primarily engaged in the acquisition and development of real estate in Australia, and intends to pursue development projects in the United States, South Africa and the Far East.
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