Australian Vintage sells vineyard for $5 million
- Australian Vintage signed binding agreements to sell its Adelaide Hills cellar door site and vineyard for $5 million to Woodthall and Adelaide Wine.
- Net proceeds from the property transaction will be directed towards paying down existing corporate debt.
- The transaction aligns with the producer's strategic pivot towards an asset-light model by removing loss-making business units.
Australian Vintage (ASX:AVG) signed binding agreements to sell its Adelaide Hills cellar door site and vineyard for $5 million to reduce corporate debt.
The divestment comes as declining wine tourism has reduced the financial performance of regional cellar doors.
"As wine tourism continues to decline, loss-making cellar doors do not add the value they once did," said Australian Vintage CEO Tom Dusseldorp.
The transaction will settle on Nov. 9, while Australian Vintage retains ownership of the Nepenthe brand and secured a grape supply contract for vintage 2027.
Following the announcement, the Australian Vintage share price was unchanged at $0.081.
The business is shifting operations towards an asset-light structure focused on regional grape sourcing.
Management stated that removing non-performing assets will support ongoing debt reduction and preserve SWA quality certification standards.
