Chinese tycoon buys wine assets

ONE of China's wealthiest men, Xingfa Ma, is eyeing more winery acquisitions in Australia after investing almost $20 million in vineyards in the past year, including a controlling stake in the Ferngrove winery in the Margaret River district of ­Western Australia.

Mr Ma, who amassed a fortune in China through his bearings company, Tianma Bearing Co, has set up 12 wine retail stores across China and is expected to double store numbers this year as he aims to sell his Australian wines next to imported French reds, reports The Australian Financial Review.

Mr Ma spent $10 million to gain a 72 per cent share of Ferngrove last year and is offering to spend up to $5.5 million to buy out existing investors, which include BRW rich list member Jack Bendat and former West ­Australian Newspapers chairman Peter Mansell.

Those investors, however, have the choice to remain holders and participate in a $5.5 million rights issue to fund working capital and $1.5 million in new vineyards. Mr Ma's plans to expand Ferngrove come on the heels of his purchase of South Australia's Stonehaven winery for more than ­$5 million.

Mr Ma's wine splurge highlights a growing appetite by Chinese investors to invest in Australian agricultural assets.