NZ: Villa Maria expands in sought-after Gimblett Gravels

(Decanter) - New Zealand wine group Villa Maria has acquired a further 41-hectare vineyard estate in the country's sought-after Gimblett Gravels area.

Villa Maria has acquired 25ha of Pask Winery's Gimblett Road vineyard and 16 ha of Pask's leased vineyard for an undisclosed fee, the companies announced today (5 February).

The deal marks a rare expansion opportunity in the 800ha Gimblett Gravels winegrowing district, a sub-region of Hawkes Bay on New Zealand's North Island, according to Villa Maria's owner and founder, Sir George Fistonich.

'There is fierce competition to purchase more vineyards in this very limited premium wine area,' he said.

Villa Maria said that it now owns one third of land in Gimblett Gravels, which is also home to Craggy Range wine estate owned by billionaire Terry Peabody.

'We’re seeing strong growth in demand for red wines particularly in Asia, so securing our grape supply is crucial,' added Fistonich.

Pask previously supplied some of its surplus grapes to Villa Maria. From its own side, Pask said the sale completes a 'consolidation process'. It still owns 59ha in the area.

Although the price of the deal was not disclosed, typical vineyard value in Hawkes Bay as a whole was between US$130,000 and $170,000 per ha in the year to the end of June 2013