Chinese sniff out wineries

BUYERS from China are underpinning Australia's lacklustre vineyard market, splurging more than $50 million on property as a means of shoring up their future wine supply.

Colliers International senior executive Tim Altschwager said most of the Chinese interest had been focused on the Barossa Valley, followed by McLaren Vale, the Hunter Valley and Western Australia's Margaret River and southern regions, The Australian Financial Review reports.

The buyers were split into two groups: commercially minded operators looking for wineries to capitalise on Australia's grape glut and personal buyers in search of a holiday home or business that will expedite their citizenship application.

Chinese interests bought the 300-hectare Lake Culluleraine vineyard near Mildura from failed managed investment scheme Great Southern for $3.85 million. The same group bought the Poplars winery in Coonawarra for about $4 million.

Colliers is also close to finalising a large deal with another Chinese group for a winery in the Barossa Valley.