Southern Premium Vineyards has acquired 35 properties from Casella Family Brands and entered a long-term grape supply agreement with the company.
Casella announced in May it was looking to offload the 35 vineyards following an operational review. It is Australia’s largest family-owned winery and wine exporter by volume, owning [yellow tail] and Peter Lehmann Wines.
Southern Premium Vineyards (SPV) is the Canadian Public Sector Pension Investment Board (PSP Investments) platform that owns Australian vineyards. It currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley, South Australia.
The sale covers 7215 hectares across the 35 properties in South Australia and New South Wales, with associated water entitlements, plants, and equipment.
Casella Family Brands managing director John Casella said, “We are pleased to be entering this partnership with SPV, a platform of PSP Investments, which is an investor with a proven track record of successful long-term investment in agribusiness in Australia and around the world.
“We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of employees.”
The terms of the agreement require SPV to take on the management of the vineyards and associated employees, along with a long-term grape supply agreement with Casella
SPV director Nick Gill said the deal with Casella was a “perfect fit” for SPV.
“SPV’s strategy is to offer wine companies a multi-regional grape supply solution for their wine grape sourcing as an alternative to owning or leasing vineyards,” Gill said.
PSP Investments has a diversified portfolio of Australian agricultural investments and partnerships, including in irrigated farming, broadacre crops, beef and dairy cattle, wine grapes, tree nuts, and fruits and vegetables.
PSP Investments senior managing director, Real Assets and global head of Natural Resources, Marc Drouin, said the acquisition was a “cornerstone investment” for SPV and PSP Investments’ global wine portfolio.
“Our commitment to sustainable farming combined with our long-term investment horizon allows PSP Investments to lever Australia’s unique global competitive position for its quality wine grapes. Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions.”
The partnership has been approved by the Foreign Investment Review Board.
