Treasury Wine Estates sell two Hawke's Bay vineyards, no ongoing supply contracts
Two large vineyards in Hawke's Bay are facing an uncertain future.
The properties, which are mostly planted in grapes, have been put on the market by owner Treasury Wine Estates.
The Australian-owned wine company is selling the vineyards without ongoing supply contracts, so they could be converted for other uses.
With the growing success of apple and kiwifruit exports, it is possible the land could be turned into fruit orchards.
* Foreign owners produce a third of New Zealand wine
* Treasury Wine Estates sells Auckland winery to dairy producer Sutton Group
* Treasury Wine Estates to close Auckland winery and expand in Marlborough
* Treasury Wine Estates boss Michael Clarke's salary increases to $2.2 million
Matheson Vineyard is a 41.02 hectare property which sits at the junction of State Highway 50 and Maraekakaho Road, and has a rateable valuation of $4.38 million.
While, Dartmoor Vineyard, which is planted with 3.18ha of sauvignon blanc vines directly alongside the banks of the Tutaekuri River, has a rateable valuation of $2.2m.
The vineyards could be bought separately, or together.
However, Bayleys Auckland winery sales specialist Mike Peterson said both were likely to fetch higher offers because of their current tonnage production and future production capabilities.
Total tonnage of Matheson Vineyard has more than tripled over the past four vintages, from 110 tonnes in 2013 to 340 tonnes in 2016.
Dartmoor Vineyard produced 146 tonnes in 2013, rising to 373 tonnes in 2016.
Bayleys Napier viticulture specialist Glynn Rees-Jones said both vineyards were being sold without ongoing supply contracts and could face vastly different futures.
"Dartmoor Valley is renown among viticulturalists for being virtually frost-free, meaning the land is prime for replanting into pip fruit production or other crop land usage," Rees-Jones said.
"Surrounding properties within the valley are extensively utilised for orcharding and cropping purposes, and given the high dollar values currently being derived for apples and kiwifruit on the export market, there is every potential the vineyard could be repurposed to produce an apple or kiwifruit crop."
Buildings on Matheson Vineyard include a refurbished three-bedroom house, which was converted into an administrative office, and large equipment and machinery storage sheds.
Meanwhile, buildings on Dartmoor Vineyard includes a cabin-like office block, an implement shed, a spray and pump shed, a small chemical and pumping machinery shed, and a fuel tank storage shed.
The sale of the vineyards come after Treasury Wine Estates announced it was closing its Auckland winery, as well as the Matua packaging and cellar door site in Waimauku.
This followed news it was moving forward with plans to shift all production to Marlborough.
The wine giant produces wine in New Zealand under three brands: Matua, Shingle Peak and Squealing Pig.