Southern Premium Vineyards (SPV) – owned by the Public Sector Pension Investment Board (PSP Investments) in Canada – will buy the vineyards that Casella Family Brands put on the market earlier this year as part of a long-term strategic partnership.
The sale covers vineyards totalling 7,215 hectares across 35 properties in South Australia and New South Wales with associated water entitlements, plant and equipment.
John Casella says he has plans to grow Casella Family Brands in Australia and internationally.
“Proceeds from the sale will be reinvested into the Casella business to achieve this,” he says.
The partnership has been approved by the Foreign Investment Review Board.
SPV – which currently owns 460 hectares of vineyards in the Coonawarra and Barossa Valley – has also entered into a long-term grape supply agreement with Casella. It will take on the management of the vineyards and associated employees.
John Casella said, “We are pleased to be entering this partnership with SPV, a platform of PSP Investments, which is an investor with a proven track record of successful long-term investment in agribusiness in Australia and around the world.
“We are confident that SPV will continue to deliver the quality and consistency of the grapes we require, safeguard and preserve the vineyards and ensure the wellbeing of employees.”
SPV director Nick Gill said, “SPV’s strategy is to offer wine companies a multi-regional grape supply solution for their winegrape sourcing as an alternative to owning or leasing vineyards – and a partnership with Casella is a perfect fit with this strategy.”
Marc Drouin, senior managing director, Real Assets and Global Head of Natural Resources Investments, PSP Investments, said, “Our commitment to sustainable farming combined with our long-term investment horizon allows PSP Investments to lever Australia’s unique global competitive position for its quality winegrapes.
“Casella is a best-in-class group with an impressive portfolio of vineyards in some of the country’s most highly regarded wine regions.
“This acquisition is a cornerstone investment for both SPV and PSP Investments’ global wine portfolio.”
Casella is Australia’s largest family-owned winery and Australia’s largest exporter by volume.
Its flagship brand [yellow tail] accounts for approximately 17 percent of all Australian exported wine.
It has been awarded the World’s Most Powerful Wine Brand for five years in a row by Wine Intelligence’s Brand Power Index.
The Public Sector Pension Investment Board (PSP Investments) is one of Canada’s largest pension investment managers with C$230.5 billion of net assets under management as of March 31.
It manages a diversified global portfolio composed of investments in capital markets, private equity, real estate, infrastructure, natural resources and credit investments.
PSP Investments has a diversified portfolio of long-term Australian agricultural investments and partnerships, including in irrigated farming, broadacre crops, beef and dairy cattle, winegrapes, tree nuts, fruits and vegetables.
Established in 1999, PSP Investments manages and invests amounts transferred to it by the Government of Canada for the pension plans of the federal Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force.
Headquartered in Ottawa, PSP Investments has its principal business office in Montréal and offices in New York, London and Hong Kong.