More vineyards fail as glut hits

The dire state of the wine industry has been underlined with the mortgagee sale of two Clansman vineyards in Wairarapa and Marlborough.

Clansman is the latest of many vineyards to be put up for forced sales as the industry struggles with a wine glut and low grape prices which have tipped many wine companies into receivership or liquidation.

Clansman Vineyards, directed by Neville McLeod of Upper Hutt and Elaine McLeod of Blenheim, had nearly 50ha planted in vines.

About half was on their 50ha Wairarapa property, 6km south of Martinborough, and was planted in pinot noir and sauvignon.

Bayleys agent Lindsay Watts said there was another 13.5ha of plantable land and offered a good opportunity to buy a vineyard with potential for development.

"A well planted vineyard with excellent water resources is very hard to obtain in the Martinborough area."

The property had a 2009 rating valuation of $1.75 million.

Well established vineyards with good infrastructure were selling for between $75,000 and $100,000 per hectare, half the price of four years ago, said Watts.

Similar falls in value per hectare had been recorded in Marlborough, said Bayleys viticulture specialist John Hoare, who is selling the Clansman vineyard in the Awatere Valley.

"The return for grapes is half what it used to be and it's putting a lot of pressure on."

He estimated about 10 per cent of the 20,000ha of grapes in Marlborough were on the market.

The Clansman Awatere Valley vineyard, 15km south of Blenheim, was planted in 15.5ha of sauvignon blanc, 6ha of pinot noir, 2.5ha of pinot gris and 1ha of chardonnay.

It yielded 250 to 300 tonnes of grapes per year, said Hoare.

The vineyard had consent to take 528 cubic metres of irrigation water per day from the Awatere River till 2027.

The property had a 2008 capital value of $5m.

Tenders for the Dry River Rd, Martinborough vineyard, and the Redwood Pass Rd, Marlborough, vineyards close on Thursday.

Two other vineyards are up for forced sale. Tenders for Stoney Range's two Marlborough vineyards closed on Wednesday.

This follows the voluntary receivership of Christchurch-based Stoney Range Wines, a joint venture owned by former rich-listers and failed Dominion Finance directors Terry and Ann Butler, of Auckland, and Waipara wine company Sherwood Estates.

Fifteen Valley Vineyard and an extensive landholding totalling 167ha, including 27ha of grapevines, near Cloudy Bay Business Park, are being sold by the Bank of New Zealand.

The property was owned by failed Biocorp director Stephen McRae and Rowan McRae and John Thompson.