Delegat group buys Hawke's Bay farm for $29m
Wine maker, Delegat Group has bought a 838 hectare farm in Hawke's Bay's Crownthorpe region from Hopkins Farming Group for $29.3 million.
The purchase will support the group's long term growth strategy, Delegat said.
The agreement will settle in May 2016 and be funded within the group's long term bank facilities.
Managing director of Delegat Group Graeme Lord said the Crownthorpe region offered prime wine grape growing conditions.
"The significant land acquisition will enable Delegat Group to meet strong growth in global demand for its super premium wines, including Oyster Bay pinot gris and sparkling wine," Lord said.
The land has the potential to produce more than 550,000 nine litre cases of super premium quality wine a year when fully producing, he said.
Delegat already has established vineyards in the Gimblett Road region of the Heretaunga Plains in Hawke's Bay, New Zealand's second most planted vineyard region.
A new winery is also under construction on the outskirts of Hastings, due for completion in time for the 2016 vintage.
Planting on the Crownthorpe land will begin progressively from spring 2017.