Vintage Wine Trust Announces Acquisition of Two Vineyards in the Lodi and Yolo County Growing Regions
The Dunnigan property consists of approximately 278 acres planted to Pinot Grigio and Chardonnay as well as an additional 120 plantable acres.
07/08/07 Vintage Wine Trust Inc., a real estate investment trust focused exclusively on the wine and vineyard industry, announced that it has acquired two vineyards located in the Lodi and Yolo County growing regions -- Sparrowk Vineyard and Dunnigan Vineyard. The seller, Sirius Vineyards LLC, managed by Rudy Maggio and Arnold Cattani, will lease back the vineyards through December 31, 2009.
Transaction Highlights
The purchase price of the 283-acre Sparrowk vineyard, located east of Lodi in San Joaquin County, is approximately $4.2 million. The property consists of approximately 260 planted acres used to produce primarily Zinfandel and Cabernet Sauvignon. The majority of grapes from this vineyard are currently under contract.
The 422-acre Dunnigan vineyard, located just southeast of the town of Dunnigan in Yolo County, was acquired for approximately $4.8 million. The Dunnigan property consists of approximately 278 acres planted to Pinot Grigio and Chardonnay as well as an additional 120 plantable acres. Vintage Wine Trust expects the plantable acres will be planted to high demand white varietals in the spring of 2008.
"This latest acquisition expands our exposure to attractive grape varietals such as Pinot Grigio and Chardonnay," said Joseph W. Ciatti, Chairman and Chief Executive Officer of Vintage Wine Trust. "We believe both properties are well-positioned to benefit from improving fundamentals in the Lodi and Yolo County growing regions and will prove to be good growth vehicles for our REIT in the future.
"In addition, this transaction enables us to expand our partnerships with long-standing growers in these regions. Rudy Maggio is a third generation wine grower in Lodi, while Arnold Cattani has been a long-term grower and investor in wine properties in the Central Valley. Their history of successfully producing quality crops will serve Vintage well in the coming years," concluded Mr. Ciatti.
