select
|

Stellenbosch wine farms attract investors and top prices

Demand for farms has increased over the last two years and top end farms in Franschhoek, Paarl and Stellenbosch are now selling again, according to Pierre Germishuys, Seeff’s managing director for the Cape Winelands and Boland.



“The demand continues to be driven by good performance of wine and tourism industries. Over weekends, there is now an almost constant stream of people visiting the wine farms for tastings, restaurant outings or to attend one of the many festivals in the area.”

“From Stellenbosch and Franschhoek to Paarl and as far afield as Tulbagh, there is demand for wine farms. While the lower end of the price scale to around R30 million remains most in demand, the last year or so has seen top end investors prepared to pay top prices again for wine farms, especially in the Stellenbosch area,” says agri-agent, André Malan.

“This includes three transactions this year such as a 28ha farm that was sold for R54.5m. Uva Mira, a 140ha estate between Stellenbosch and Somerset West for R65m (R464 000/ha) and the 100ha Cordoba, high up on the slopes of the Helderberg was sold for R58m (R580 000/ha).

“Other recent sales in the Stellenbosch area include the 202ha Klaver Valley farm that was sold last year for R96.5m or R477 000/ha. The year before, there were also two top sales of R40.7m and R42.5m for 99ha and 74ha respectively, achieving a rate a hectare of R430 000 and R550 000.”

Although the demand is strong for top end farms, prices have remained fairly flat over the last five years, says Malan. Prices vary depending on the location, strength of the wine brand and the facilities on offer such as a hotel, restaurant and cottages.

“In general though, smaller boutique wine farms are priced from around R20 to R30m whereas top wine brands can sell for up to R200m and as much as R300m. Most of the top farms are marketed on a very exclusive and confidential basis and not advertised,” says Malan.

Farms in the Franschhoek valley tend to fetch the highest prices and can range to about R1m to R1.2m a hectare range. Farms in Stellenbosch sell for about R800 000 to R1m a hectare and for about R400 000 to R600 000 a hectare in the Paarl Valley.

Historic farms tend to attract a lot of attention especially those with well-preserved Cape Dutch heritage architecture. Malan says that investors tend to seek these out for renovation and development into top wine brands that can then be worth several million rand.

“There are usually very few on the market. In the Stellenbosch area, there is for example just one, a 62ha farm that dates to the late 1600s with its original 500m2 Cape Dutch manor house still well-preserved.

“It is in the Bottelary Hills area and is already attracting significant interest with at least three serious buyers looking at it. Priced at R17.95m, the farm includes 40ha planted with Pinotage, Chenin Blanc, Shiraz and Merlot. The estate has shares in a nearby wine cellar that processes the annual grape production.

“The old wine cellar is also still on the farm and although in disuse, could potentially also be renovated and restored. There are also several outbuildings including two 600m sheds, a three-bedroom manager’s house and several labourers’ cottages.

“Water sources include a dam, Theewaterskloof irrigation water and a natural spring that feeds the main house with top quality water and no harmful chemicals. There is also Eskom electricity.”

The Bottelary Hills area is one of the oldest wine producing regions, established in about 1679 by Simon van der Stel. It is home to a number of well-known wine farms such as Hartenberg, Goede Hoop, Hazendal and Kaapzicht.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK