selling vineyards, page-9

Here are a couple of links to winery articles from NZ (below). Although not Aussie specific one relates to the Marlborough region where CWT have their Delegats Oster Bay Sav Blanc vineyards.

Being in a very specific niche property sector (unlike other A-REITS) CWT may find it tough to move their property assets quickly. This may also be compounded with the recent MIS failures of Timbercorp and Great Southern (in terms of banks willingness to finance rural land deals).

I agree that the divi cut is all good and will hopefully be all that is needed to slowly repay debt and get covenant levels down. I would not be surprised, or too unhappy, if the divi was cut further for the purpose of accelerating the de-leveraging vs. the need for a dilutive cap raising.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10574081

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10574079