Scotchmans Hill
Producer Website
Scotchman's Hill winery changes hands for $10.6 million
by Larry Schlesinger
A Victorian investment syndicate has paid $10.6 million for the Scotchmans Hill winery and vineyards on the Bellarine Peninsula, near Geelong.
The sale – one of the most significant this year – includes 34 hectares of vineyards as well as wine-processing facilities, a cellar door, inventory and a dozen wine brands, including Cornelius, Swan Bay and Henry Frost.
Scotchmans Hill was established by winemakers David and Vivienne Browne in 1982, turning a derelict dairy farm into the region’s second vineyard and first winery, producing about 150,000 cases a year.
Their first vintage was in 1986 with the winery quickly establishing a reputation for its pinot noir and chardonnay varieties. In 1994, the Brownes acquired historic Spray Farm and turned it into a function centre and outdoor concert venue. This was sold to horsebreeder Rick Jamieson in 2010 for $7.05 million and then to ANZ boss Mike Smith in March this year.
In 1998, a winery and cellar door was added at Drysdale and, in 2012, the Brownes acquired a lease over the Pettavel winery at Waurn Ponds as the business expanded to include wines produced in the Mornington Peninsula, New Zealand and South Australia.
The financial burden of Pettavel and a family feud over a $4.5 million debt proved the downfall of the Scotchmans Hill Group with the business placed in the hands of administrator from Ferrier Hodgson in August last year.
In September, receivers Kate Warwick and Guy Edwards from PwC were appointed by Rabobank to sell the assets of the company to realise an $8.4 million debt.
Directors of Scotchmans Hill Pty , the new owners and operators, include Hamish Giles, chairman of ASX-listed bathroom products manufacturer Marbletrend and Marbletrend director, Peter Reilly.
The syndicate took over the running of the winery earlier this year under a lease arrangement and recently settled on the land and business assets.
The sale of Scotchmans Hill was negotiated by Tim Altschwager and Nick Dean of Colliers International.
Mr Altschwager said the winery sold for a “reasonable price" in the current market.
“The land is well-placed being close to Melbourne. It has a lot of good things going for it. We had a lot of inquiry from domestic and international purchasers," he said.
Read more:http://www.afr.com/real-estate/residential/scotchmans-hill-winery-changes-hands-for-106-million-20140922-jfts0#ixzz4gLr6Ao2W
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