Australian Vintage Limited (AVL) has announced that it is exiting its lease of the Balranald Vineyard in the Riverland seven years early.
AVL leases the vineyard from Belvino Investments No. 2 Pty Ltd, and the lease will terminate on 26 June 2024, subject to the sale of the vineyard which is expected to occur on the same day.
In a statement to the ASX, AVL said: “The lease term was due to expire after the 2031 vintage however the parties have agreed to end the lease early. It is a testament of our strong partnership with Belvino that we were able to work through constructive options with the property, benefiting both parties.”
The Balranald Vineyard currently yields between 11,000 and 13,000 tonnes of grapes, predominantly red varieties.
AVL’s statement: “Exiting the Balranald Vineyard lease provides AVG flexibility in its sourcing strategy in a changing consumer environment. In addition, net cash flow benefit totals $12.6m over the remaining lease term.
“AVG and Belvino have committed to redeveloping other vineyards leased by AVG, including the Qualco and Jubilee Vineyards, maximising the combined return from these important assets.”