Vintage Wine Trust Broadens Property Portfolio With Acquisition of Vineyard in Washington State
The Grandview Vineyards consist of approximately 700 gross acres across four properties, 568 acres of which are planted vineyard and 84 acres are apple orchard.
12/09/07 Vintage Wine Trust Inc., a real estate investment trust focused exclusively on the wine and vineyard industry, announced it broadened its property portfolio with the purchase of the Grandview Vineyards in Washington State. The property, located in the Yakima Valley AVA, one of Washington's premium wine regions, was purchased from the Den Hoed family for $12.4 million.
The Grandview Vineyards consist of approximately 700 gross acres across four properties, 568 acres of which are planted vineyard and 84 acres are apple orchard. The four properties are known as Desert Hills Vineyard, Andrew Den Hoed Farms, Foothill Vineyard and Rattlesnake Vineyard. The vineyards are planted predominantly to Reisling, Chardonnay and Merlot, with the vast majority of grapes under contract to Ste. Michelle Wine Estates, the most established wine producer in Washington State.
The property will be leased back to the two tenant-principals, Andy Den Hoed, Jr. and William Den Hoed, who will continue to live on and manage the ranch for the foreseeable future. The initial lease term runs through December 31, 2011 and provides four five-year renewal options.
"The Yakima Valley region is world renowned for producing quality wines at reasonable prices, and Washington State as a whole is growing in vineyard plantings. Therefore, it is only natural for Vintage Wine Trust to extend its portfolio reach to include this profitable, fertile area," said Joseph W. Ciatti, Chairman and Chief Executive Officer.
"Grandview Vineyard has a long-standing, solid reputation for producing quality, premium grapes, as evidenced by its contracts with established grape buyers and wine marketers. In addition, Andy Den Hoed, Jr. and Bill Den Hoed are well respected members of the Washington wine industry, known for their growing knowledge, property management and fiscal responsibility. As a result, we are confident this property will be a strong growth vehicle for us in the future," concluded Mr. Ciatti.
"Our family has a long history of associating with first-rate, established entities in the wine industry," said Andy Den Hoed, Jr. "We are pleased to partner with Vintage Wine Trust and believe its infusion of capital will help to ensure that Grandview Vineyards will continue to supply quality grapes to our buyers for many years to come. The Den Hoed family looks forward to a long and prosperous collaboration with Vintage."
