Note: If you are a recent customer or subscriber to our newsletters, you can view the previous Vineyard Investment newsletters here.
The key to the investment strategy is to build on what is already in place and to develop overseas markets most notably in Ireland. Four hectares of new vines are also planted which will be producing fruit within three years and this will be a key factor in further developing new wines for the Irish market. Another aspect of the investment, which is of particular interest, is capital appreciation. Land under vine within the Languedoc region still sells at around EUR 30k to EUR 35k per hectare (2.25 acres). Compare this to the Grand Cru sites of Saint Emilion where the same land sells in excess of EUR 1,000,000 per hectare and you will understand why so many of the Bordelaise vignerons are investing in the Languedoc. I'm not suggesting it will reach these levels but with careful development and a positive marketing strategy it should only go the right way!
As explained in previous newsletters our plan is to invite participation from as many of our customers as possible. We propose to issue a prospectus over the coming 8 weeks to anyone interested in participating (note only people domiciled in Ireland and the U.K. can apply) and to create a series of information web pages which we will update as the project evolves and will include imaging, new plantings, winemaker reports and of course vintage updates.
The proposal is that an Irish company will be formed to acquire the Villa Symposia property and to develop the winery as a long term, profit oriented investment, substantially asset backed. We plan to raise at least EUR 800,000 to finance the purchase and to provide for development and working capital. WineOnline.ie will be a shareholder and the key partner in providing the route to market for the company's enlarged production. My hope is that the company will be substantially owned by the customers of WineOnline.ie and we plan to give you priority in applying for shares. The minimum subscription will be EUR 2,500. I myself, as promoter will be actively involved together with my business partner, Anne Mullin as will Eric Prissette, while working with an experienced Board of Directors.
Gerry Fitzsimons
Sales and Marketing Director
WineOnline.ie
