PAUL Holmes a Court's Vasse Felix winery has significantly increased the size of its vineyards following the $2 million acquisition of a property south of Margaret River, providing much needed confidence for a sector battling challenging export markets, intense retail competition and a nagging grape glut.
Mr Holmes a Court's purchase of Dragonvale Estate, which settled on Friday, comes as Chinese buyers, who vanished in the wake of the global financial crisis, begin to return to the premium wine-growing region, The Australian Financial Review reports.
Vasse Felix's $2 million purchase of the 80-hectare Karridale property and its 36 hectares of vines increases the number of the vineyard plantings owned by the Margaret River winery by almost 50 per cent, allowing it to manage more of its own fruit production, thereby reducing the need to buy grapes from other growers.
Mr Holmes a Court's purchase comes five years after a company linked to Dragon Property Group managing director Tony Davies paid $2.7 million for Dragonvale Estate, which has been selling its premium fruit to well-known Margaret River winery Cape Mentelle.
It is a welcome development for the region, where a record number of wineries and vineyards were put up for sale last year.
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