Vintage Wine Trust Acquires Sweetwater Vineyard
The 1,145-acre Monterey County, California property was purchased for $30.1 million, and is adjacent to the company's Terra Ventosa vineyard.
03/08/06 Vintage Wine Trust Inc., a real estate investment trust focused exclusively on the wine and vineyard industry, today announced that it has acquired the Sweetwater Vineyard from Silverado Premium Properties, LLC. The seller, Silverado Sweetwater Vineyards, LLC, will lease the vineyard for seven years, with terms that include three five-year renewal options and an annual option to repurchase the vineyard beginning in the seventh year of the lease term and continuing through 2021.
The 1,145-acre Monterey County, California property was purchased for $30.1 million, and is adjacent to the company's Terra Ventosa vineyard. The 903 planted acres include Cabernet Sauvignon, Pinot Noir, Pinot Gris, Chardonnay and Syrah. The current mix of highly marketable varieties is the result of significant grafting completed over the last two years. A majority of the crop is sold under long term contracts to established premium wine producers.
Commenting on the acquisition, Joseph W. Ciatti, Vintage Wine Trust's chairman and chief executive officer, stated, "We are very excited about this transaction, particularly as it demonstrates our continued ability to attract the premier owners and operators in the wine industry such as Silverado as tenants. We are very pleased to add this vineyard to our portfolio, given the superior location coupled with the astute enhancements recently made to the property. With the closing of this transaction, we have deployed over $140 million of capital into growing our asset base over the last sixteen months."
Commenting on the transaction, Mark Couchman, President of Silverado Premium Properties, stated, "We appreciate the liquidity that Vintage Wine Trust has provided, allowing us to re-direct our investment in this large vineyard towards additional opportunities."
