Scenic country living on top-end Cape Wineland farms
Few can deny the allure of investing in a wine farm in the Cape, especially in areas such asFranschhoek, Paarl and Stellenbosch.
This 62ha farm for sale in the Stellenbosch area dates to the late 1600s with its original 500sqm three bedroom, two bathroom Cape Dutch manor house still well-preserved. It is selling for R17.95 million - click here to view.
This is according to Pierre Germishuys, Seeff’smanaging director for the Cape Winelands/Boland, who says demand for farms has increased over the last two years and top-end farms are now selling again.
The demand continues to be driven by the good performance of wine and tourism industries, he says. Over weekends, he says 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.
Germishuys says that as we now enter the warmer tourism months, the demand for wine farms is set to increase.
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 the R30 million mark remains most in demand, the last year or so has seen top-end investors once again prepared to pay top-end prices for wine farms, especially in the Stellenbosch area, says agri-agent, André Malan.
This 21.6ha farm selling in Simondium, Paarl, is located in the middle of the triangle of Paarl, Stellenbosch and Franschhoek, close to the N1 and only 45km from the Cape TownInternational Airport. The farm has two houses, as well as other buildings and offers vineyards, fruit orchards and equestrian facilities. It is on sale for R22 million - click here to view.
This includes three transactions this year, such as 28ha farm that sold for R54.5 million. Uva Mira, a 140ha estate located between Stellenbosch andSomerset West that sold for R65 million (R464 000 per hectare), while the 100ha Cordoba, located high up on the slopes of the Helderberg Mountain sold for R58 million (R580 000 per hectare).
Other recent sales in the Stellenbosch area include the 202ha Klaver Valley farm that sold last year for R96.5 million at a rate of R477 000 per hectare. The year before, there were also two top-end sales of R40.7 million and R42.5 million for 99ha and 74ha respectively, achieving a rate per hectare of R430 000 and R550 000.
While 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 start at around the R20 million to R30 million mark, while top-end wine brands can sell for up to R200 million and as much as R300 million, depending on the brand, says Malan.
He says most of the top-end farms are marketed on a very exclusive and confidential basis and not advertised.
This 5ha smallholding for sale in Stellenbosch is one of nine situated in a fenced security estate with 24-hour guards. The four bedroom, three bathroom home has large windows and verandas offering mountain, vineyard and valley views. It is selling for R15.9 million - click here to view.
Farms in the Franschhoek valley tend to fetch the highest prices, and can range to about the R1 million to R1.2 million per hectare range at the top end. Stellenbosch farms sell for about R800 000 to R1 million per hectare, and for about R400 000 to R600 000 per hectare in the Paarl Valley.
He says 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 a top-class wine brand that can eventually be worth several millions of rands.
There are usually very few of these on the market, says Malan. In the Stellenbosch area, for example, there is just one rare find, a 62ha farm that dates to the late 1600s with its original 500sqm Cape Dutch manor house still well preserved.
It is located in the Bottelary Hills area and is already attracting significant interest, with at least three serious buyers looking at it. Priced at just R17.95 million, the farm includes 40ha planted with Pinotage, Chenin Blanc, Shiraz and Merlot. The estate currently has shares in a nearby wine cellar that processes the annual grape production.
It is a unique find with excellent investment potential and can easily be developed into a boutique wine brand with additional hospitality facilities, says Malan.
The old wine cellar is also still on the farm, and although in disuse, could potentially be renovated and restored. There are several outbuildings including two sheds of 600sqm each, a three bedroom manager’s house and several labourers’ cottages.
The farm includes excellent water sources including a dam, Theewaterskloof irrigation water and a crystal clear natural spring that feeds the main house with top-quality water and no harmful chemicals, says Malan. 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 ('Best Shiraz, awarded in Paris in 2013), Goede Hoop, Hazendal and Kaapzicht.
With the areas reachable in under an hour’s drive from Cape Town, and the Cape International Airport also in close proximity, these properties appeal not only to local buyers, but investors from across the globe.