"It has been rumoured for some time that China's Bright Foods was keen to buy Treasury Wine Estates, one of the world's biggest winemakers and owners of brands such as Penfolds, Wolf Blass and Rosemount."
Chinese buy into prime NZ wine region Date June 6, 2013 - 12:23PM (1) Read later Eli Greenblat Eli Greenblat Retail reporter
A group of Chinese investors have purchased Otuwhero Estate vineyards in New Zealand's Marlborough region from receivership, securing a foothold in the booming sauvignon blanc wine sector and further tightening Chinese control on local agricultural assets.
New Zealand's Overseas Investment Office has given its stamp of approval for the purchase of more than 300 hectares of Awatere Valley land in Malborough to a Chinese company. The sale price has not been disclosed.
A company called O:TU Investments, controlled by Chinese nationals Min Jia and Xiumei Lin, has bought the land from Otuwhero Estates, Otuwhero Estate Wines, Otuwhero Estates No 3 and Tui Concepts.
The Otuwhero Marlborough wine group lurched into receivership in 2010, owing $NZ29.93 million ($25 million). Since its failure it had been managed by accounting and receivership firm Deloitte.
Advertisement Marlborough has exploded onto the world stage of wine in the last few years thanks to the massive demand by drinkers for the region's sauvignon blanc. Marlborough sauvignon blanc currently dominates the top 10 most popular wines sold in Australia, with local liquor shops heavily promoting the style of white wine in their stores and in advertising.
The purchase of Otuwhero comes as Chinese investors show an insatiable appetite for vineyards across the globe, with one recent report from Europe suggesting Chinese companies were buying one winery a month in France, with investors from the Middle Kingdom also investing in Australian winemakers.
Last month a Chinese investment firm made a strategic investment in one of Australia's oldest wineries, Bleasdale at Langhorne Creek, South Australia, buying a 10 per cent stake in the family-owned business.
Chinese firms have been eager buyers of Australian agricultural assets in the last few years, buying up wineries, sugarcane, cattle businesses and farmland. It has been rumoured for some time that China's Bright Foods was keen to buy Treasury Wine Estates, one of the world's biggest winemakers and owners of brands such as Penfolds, Wolf Blass and Rosemount.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)